Exclusive Bitcoin (BTC) Teases $57,000 Breakout, Gets Knocked Back

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In Brief
  • Bitcoin has long-term support between $46,900-$47,700.

  • BTC is facing resistance at $55,850.

  • Short-term indicators are bearish.

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The Bitcoin (BTC) price resumed its upward movement on April 28 but failed to reclaim resistance at $55,850.



Bitcoin is expected to find short-term support near $52,370 or $51,350. Afterward, it’s likely to make another breakout attempt above the $55,850 resistance area.

BTC resumes bounce

BTC has been increasing since bouncing on April 26. The bounce began at a strong support level between $46,900-$47,725. The support is created by the 0.5 long-term Fib (orange) and 0.786 short-term Fib (black) retracement levels. 



However, BTC reached a high of $56,428 before decreasing.

While the MACD has given a bullish reversal signal, both the Stochastic Oscillator and the RSI are bearish. More specifically, the latter was just rejected by the 50-line and is now decreasing.

Until the price manages to reclaim the current resistance area near $56,000, we cannot consider the trend bullish.

Chart By TradingView

Short-term BTC rejection

The two-hour chart shows that the rejection occurred from the 0.5 Fib retracement resistance area (black) at $55,865. This created a long upper wick and began the current downward movement.

The drop was preceded by bearish divergence in the RSI. In addition, the MACD has nearly turned negative while the RSI has already fallen below the 50-line. Both of these are considered bearish signs.

There are three minor support levels below the current price, created by the 0.382, 0.5, and 0.618 Fib retracement levels (white). These are found at $52,381, $51,349, and $50,317 respectively. The $51,329 level is also a horizontal support area and is expected to provide strong support if the price drops to it.

Chart By TradingView

Conclusion

The rejection from the $55,850 area fails to confirm that the BTC trend is bullish. Similarly, technical indicators in the daily time frame are undecided. 

BTC is expected to continue correcting in the short term until it reaches one of the support levels outlined.

For BeInCrypto’s previous bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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