TA: Bitcoin Fails Again, Here’s Why BTC Remains At Risk of More Losses - SMARTNAIRA

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Monday 10 May 2021

TA: Bitcoin Fails Again, Here’s Why BTC Remains At Risk of More Losses

Bitcoin price failed once again to clear the $60,000 resistance zone against the US Dollar. BTC is showing a few bearish signs, but the $52,500 support holds the key.

  • Bitcoin failed to gain pace above $59,500 and it even struggled to test $60,000.
  • The price is now trading near the $55,500 support and the 100 simple moving average (H4).
  • There was a break below a key contracting triangle with support near $58,000 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair is recovering losses, but it is facing a strong resistance near $57,000.

Bitcoin Price Trims Gains

Bitcoin cleared the $58,800 and $59,000 resistance levels. It even spiked above $59,500 level, but there was no follow through move. It struggled to even test the $60,000 resistance zone.

As a result, there was a bearish reaction below the $58,500 and $58,000 support levels. There was also a break below a key contracting triangle with support near $58,000 on the 4-hours chart of the BTC/USD pair. The pair dived below the $55,500 level and the 100 simple moving average (H4).

It traded as low as $53,445 and it is currently correcting losses. There was a break above the $54,000 and $54,500 levels. Bitcoin even climbed above the 23.6% Fib retracement level of the recent drop from the $59,590 high to $53,445 low.

Bitcoin Price

Source: BTCUSD on TradingView.com

The price is now trading near the $55,500 support and the 100 simple moving average (H4). An initial resistance is near the $56,500 level. It is close to the 50% Fib retracement level of the recent drop from the $59,590 high to $53,445 low.

The key resistance is now near the $57,000 level. A successful break above the $57,000 level is needed to start a fresh increase towards the $59,500 resistance zone in the near term.

More Losses in BTC?

If bitcoin fails to clear the $56,500 resistance or $57,000, it could extend its decline. An initial support on the downside is near the $54,500 level.

The first key support is near the $53,500 level and the recent low. Any more losses might call for a test of the main $52,500 support zone.

Technical indicators:

4-hours MACD – The MACD is slowly losing pace in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is now close to the 40 level.

Major Support Levels – $54,500, followed by $53,500.

Major Resistance Levels – $56,500, $57,000 and $59,500.



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