Bitcoin Recovers but Faces another Rejection at $57,000 Resistance Zone

BTC price recovers after plunging to $50,500 psychological price level. For the past 48 hours, Bitcoin has been rising as buyers attempt to breach the resistance at $57,000. The current uptrend is likely to face further resistance on the upside.

For instance, on April 7, BTC price rebounded above the $56,000 support as price rallied to breach the $58,000 resistance. Bitcoin will resume upside momentum if buyers reclaim the $58,000 support. BTC/USD will have price acceleration above the $58,000 support. 

Presently, Bitcoin is facing rejection at the $57,000 and $58,000 resistance zones. There is a tendency for price to fall again. In previous price action, Bitcoin bulls fail to break and sustain an upward move above the $58,000 support. This is in the first week of April before the recent breakdown. The resistance level has always been broken with strong bullish momentum. However, if buyers scale above the $58,000 resistance, they are likely to face stiff resistance between $61,825.84 and $65,000. Meanwhile, Bitcoin is trading at $56,987.10 at the time of writing. 

Bitcoin indicator reading  

Bitcoin bulls are struggling to sustain above the 50-day SMA. However, a break below the 50-day SMA will mean further downward movement of price. BTC price has fallen to level 43 of the Relative Strength Index period 14. It indicates that BTC price is in the bearish trend zone and capable of falling.

Technical indicators:  

Major Resistance Levels – $65,000 and $70,000

Major Support Levels – $50,000 and $48,000

What is the next direction for BTC/USD?

BTC price is in a downward move but has reached bearish exhaustion. In the meantime, Bitcoin is facing another rejection at the $57,000 resistance zone. Meanwhile, on April 16 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. This retracement indicates that the market will fall to level 2.618 Fibonacci extension or the low of $53,697.30. From the price action, Bitcoin fell to $50,500 low and pulled back to the Fibonacci level.

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.