Bitcoin (BTC) is undergoing an upward correction following its crash on May 1, 2024. The largest cryptocurrency reached a low of $56,711 as bulls bought dips. On May 4, Bitcoin price rallied to the 21-day SMA or resistance at $64,644.
Long-term forecast for the Bitcoin price: bearish
According to price analysis by Coinidol.com, bulls have been buying the dips in the last 48 hours but have not been able to sustain their upside momentum above the 21-day SMA. Bitcoin will rise above the 50-day SMA or reach a high of $66,000 if it clears the first obstacle at the 21-day SMA.
Moreover, a break above the 50-day SMA will propel the cryptocurrency to its previous high of $73,666. The cryptocurrency will fall if it is rejected at the 21-day SMA or the $64,000 barrier. The cryptocurrency value will test the previous lows of $60,870 and $59,810. The current BTC/USD price stands at $63,273.
Bitcoin price indicator reading
Bitcoin rose above the 21-day SMA today before falling again. the bulls and bears are currently vying for control of the 21-day Simple Moving Average. On the 4-hour chart, the price bars are above the moving average lines, which means that the cryptocurrency will continue to rise despite the setback.
Technical indicators:
Key resistance levels – $70,000 and $80,000
Key support levels – $50,000 and $40,000
What is the next direction for BTC/USD?
The largest cryptocurrency is recovering but reaching the $64,000 resistance level. The cryptocurrency is on the retreat after retesting its previous high. Bitcoin is in a slight correction, retreating above the $63,000 support and fluctuating below the resistance level.
If the cryptocurrency breaks above the 21-day simple moving average, its value will rise. Nonetheless, Bitcoin is trading just above $63,000 as doji candlesticks materialize.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol.com. Readers should do their research before investing in funds.