- BTC resisted by $57,000.
- Support was found at $55,500.
- Next resistance at $58,000.
Today’s Bitcoin price prediction is bearish as the market has set a lower low after setting a lower high around $59,200 on Monday.
Bitcoin price prediction: Bitcoin breaks lower low at $55,500, set to retrace higher today
BTC/USD opened at $55,962 after pushing lower late yesterday. Previous support at $57,000 was clearly broken, and the Bitcoin price action established a new lower low. Therefore, we can expect BTC/USD to retrace upwards later today as it looks to set another lower high.
BTC/USD 4-hour chart – BTC retraces back to the upside and retests $57,000
On the 4-hour chart, we can see the market peaking at $55,500 overnight and consolidating for several hours. Earlier today, the Bitcoin price action momentum shifted and showed retracement to the upside to set another lower high.
BTC/USD 4-hour chart. Source: TradingView
Overall, Bitcoin has become bearish over the past few days. After rallying by almost 20 percent from $51,000 at the end of March, the market found strong resistance at the $60,000 mark. As BTC/USD price approached this resistance, we saw a substantial reduction of the previously bullish price momentum.
At the end of March and the beginning of February, the Bitcoin price action moved sideways until support around $58,000 was broken on the 3rd of April. From there a lower high was set around $59,500, and the market reversed again. This resulted in another push lower over the last 24 hours, with another lower low being set at the $55,500 mark.
Currently, Bitcoin has started to push higher after consolidating for several hours above the $55,500 support. The first resistance at $57,000, which previously served as support, is likely to offer some resistance. However, when considering the overall bearish wave, we are likely to see BTC/USD retrace higher towards the next resistance level at $58,000.
From there, the Bitcoin price action will likely reject further upside and set another lower high. This means that further downside should be seen later this week, with the $54,000 level as the next target for the next downswing lower.
If the $54,000 level is reached, the bearish momentum should start to diminish as the market price would have retraced enough of the previous gains. Therefore, bulls would have a good incentive to start pushing the market higher, which should lead to a reversal back to the upside.
Bitcoin Price Prediction: Conclusion
Bitcoin price prediction is bearish as the market has broken below the previous support around $57,000 and moved lower until support was found at $55,500. Right now, we expect BTC/USD to move higher and retrace some of the loss seen overnight as it likely prepares to set another lower high. The first resistance level is seen at $57,000, which is likely to be broken. The next resistance is located around $58,000.
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