Bitcoin Price Analysis: BTC treading on shaky ground as hope for $60,000 diminishes

Published May 7, 2021 | Updated May 7, 2021

In Brief

Bitcoin recovery lost steam on hitting $58,000, paving the way for correction.

Short-term technical levels flip bearish while support levels weaken.

bitcoin

Bitcoin Price Analysis: BTC treading on shaky ground as hope for $60,000 diminishes

Bitcoin recovery lost steam on hitting $58,000, paving the way for correction.

Short-term technical levels flip bearish while support levels weaken.

Bitcoin shot up from support established at $53,000. The approached to $60,000 was gradual but steady. Bulls took down several resistance levels, including the 100 Simple Moving Average (SMA), the 50 SMA, and the 200 SMA. However, an immense seller congestion zone at $58,000 became a hard nut to crack.

According to data by CoinGecko, the flagship cryptocurrency has lost 2.4% of its value in the last 24 hours. It has sustained a 4% growth in seven days but lost nearly 4% in the previous 30 days. Bitcoin’s trading volume across numerous platforms averaged at $66 billion and boasted of a $1 trillion market cap.

Bitcoin price correction could extend to $50,000

The bellwether cryptocurrency has corrected from the resistance at $58,000 and currently teeters at $55,630. Two tentative support levels have been lost, including the 200 SMA and the 50 SMA.

Note that the slightest resistance path appears to be downward based on the Moving Average Convergence Divergence (MACD) bearish impulse. The indicator is almost crossing into the negative region. Simultaneously, bearish pressure soar as the MACD line (blue) strikes under the signal line.

BTC/USD four-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview 

Similarly, the Relative Strength Index (RSI) reinforces the bearish outlook while dropping toward the midline. It also features a bearish divergence from the price.

Therefore, support at the 100 SMA is crucial to the resumption of the uptrend. If push comes to shove, $53,000 must hold to avert the potential losses to $50,000.

Bitcoin intraday levels

Spot rate: $55,630

Trend: Bearish

Volatility: Growing

Support: $55,000 and $53,000

Resistance: $56,000 and $58,000

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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John Isige 1004 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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