Bitcoin Price Prediction: BTC tumbles eyeing $50,000 amid rejection from $59,000

Published May 4, 2021 | Updated May 4, 2021

In Brief

Bitcoin failed to break above $60,000, leading to a surge in overhead pressure.

BTC seeks support at the 50 SMA while losses risk extending to $50,000.

bitcoin

Bitcoin Price Prediction: BTC tumbles eyeing $50,000 amid rejection from $59,000

Bitcoin failed to break above $60,000, leading to a surge in overhead pressure.

BTC seeks support at the 50 SMA while losses risk extending to $50,000.

Bitcoin bulls controlled most of the price action in the market last week despite the mundane trading. The flagship cryptocurrency managed to clear the resistance at $55,500, which bolstered the price to around $59,000. Although investors had speculated BTC closing the day above $60,000 on Monday, a correction ensued, with the largest cryptocurrency diving under $55,000.

Bitcoin fights for higher support

The pioneer cryptocurrency trades at $55630 at the time of writing. Marginally beneath the market value, the 50 Simple Moving Average (SMA) provides support. Holding above this area will see bulls shift the focus from defense to breaking the barriers toward $60,000.

Meanwhile, the least resistance path appears to be downward based on the Moving Average Convergence Divergence (MACD) on the four-hour chart. The indicator is in the positive territory but is dropping toward the midline (0.00). If the MACD line (blue) increases the divergence under the signal line, the bearish leg will likely extend to the next key tentative support at $52,500.

BTC/USD four-hour chart

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

On the upside, the Relative Strength Index (RSI) shows that a rebound is possible in the near term. For instance, the indicator seems to have found an anchor at 40 and is currently pointing north toward the midline. Continued movement above the average level would encourage more investors to join the market in anticipation of a lifting beyond $60,000.

Bitcoin intraday levels

Spot rate: $55,740

Trend: Bearish biased

Volatility: Low

Support: $55,000 and $52,500

Resistance: $56,00, $57,500 and $60,000

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
John Isige 937 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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