Bitcoin Slumps after Losing Its Support Levels, Struggles below $57,000 High

Bitcoin price is recovering after falling to the previous low at $55,500. The recent downtrend was a result of the bears breaking the crucial support at $58,000.

Bitcoin (BTC) Price Long-Term Prediction: Bullish

On April 8 buyers are attempting to push BTC price above the $57,000 resistance. If buyers are successful, the upward move will resume. The current upward move is facing resistance at $57,000.

The downtrend will resume if BTC/USD turns down from the $57,000 resistance. That is, the market will fall and revisit the previous low at $54,000. Unfortunately, if the $54,000 support also cracks the selling pressure will extend to the low of $50,000. On the upside, Bitcoin will resume upward move if buyers break the recent high. This will propel price to reclaim the $58,000 support.

Bitcoin (BTC) Indicator Reading  

BTC price has broken the 21-day SMA and it is approaching the 50-day SMA. A break below the moving averages will mean the resumption of  downtrend. Similarly, if price breaks below the trend line, it will signal the termination of an uptrend. Bitcoin is below the 80% range of the daily stochastic. It indicates that price is in a bearish momentum.

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 is in a downward move after losing the $58,000 and the $57,000 support. The downtrend may resume if bulls fail to sustain above the $57,000 resistance. On April 7 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This retracement indicates that Bitcoin will fall to level 1.618 Fibonacci extension or the low of $55,790.40. BTC price has fallen to 1.618 Fibonacci extension and resumed upward. 

Disclaimer. This analysis and forecast are the personal opinions of the author 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.