Bitcoin Consolidates Near the $57,000 High, a Breakout Is Imminent

Following the drawdown on March 15, Bitcoin’s price has been fluctuating between the $54,000 and $57,000 price levels. Buyers have been making frantic efforts to resume the upward move but the uptrend is hampered by the resistance at $57,000.

On March 15, the bulls retested the resistance twice and the BTC price suddenly dropped to the $54,000 support. The bulls bought the dips as Bitcoin recovered from the sudden fall. The market has risen and it is consolidating near the resistance at $57,000. 

Buyers have more advantage than sellers as consolidation near the resistance increases the chances of a possible break out. On the upside, Bitcoin will only resume an uptrend when the resistances at $57,000 and $58,000 are breached. The BTC/USD will have an opportunity to retest the $60,000 psychological price level. Nevertheless, if the bullish momentum is sustained above the next psychological price level, Bitcoin will reach the $75,000 high. However, this bullish scenario will be invalidated if the bulls failed to break the recent highs.

Bitcoin indicator reading  

Bitcoin price has been consistently fluctuating above the 21-day and 50-day SMAs which indicates that there is a possible rise in price. Bitcoin is above the 80% range of the daily stochastic. BTC price has been rising even though the price has reached the overbought region.

Technical indicators:  

Major Resistance Levels – $60,000 and $62,000

Major Support Levels – $45,000 and $40,000

What is the next direction for BTC/USD?

Bitcoin price is likely to move up as the market consolidates near the resistance level. On a weekly time frame, a retraced candle body tested the 61.8 Fibonacci retracement level on February 22. This retracement indicated that the market will rise to level 1.618 Fibonacci extension. That is the high of $75,732.30.

Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.