Bitcoin has reclaimed its 100-day simple moving average (SMA) above $56,000 and may push toward $58,000 in the coming hours.
Bitcoin recovered from yesterday’s decline, gaining roughly 4% against the US Dollar over the last 24 hours. The price remains comfortably above the $54,000 support zone, enabling the leading cryptocurrency to break through both the $55,000 and $56,000 resistance levels yesterday.
The BTC/USD pair climbed toward $58,000 before pulling back and currently trades above its 100-day SMA. After the correction, the price sits around $57,000, but momentum suggests BTC could rise again and reach $58,000 within the next few hours. Analysts continue to view Bitcoin as being in a bull market despite its recent difficulty overcoming the $60,000 barrier.
#Bitcoin at $57,500 is not a bear market.
— Michaël van de Poppe (@CryptoMichNL) May 5, 2021
BTC price outlook
Short-term sentiment for Bitcoin is bullish, with a near 5% rise over the previous 24 hours. The BTC/USD pair faces resistance around the channel trend line near $57,600. A decisive break above that trend line could allow Bitcoin to quickly surpass the $58,000 level. If that breakout occurs, the next major resistance to watch would be around $60,000.
BTC/USD 4-hour chart. Source: Coinalyze
Technical indicators point to positive momentum. The BTC/USD MACD is showing bullish signals and could move further into positive territory. The RSI (Relative Strength Index) sits comfortably above the 50 level, and the market has established key support around $56,600 and $55,500. If momentum continues, BTC could clear resistance levels at $57,600, $58,000 and ultimately target $60,000.
On the downside, failure to break above $57,600 or $58,000 could prompt a renewed pullback. Bulls would need to defend the $56,600 support and the channel zone to prevent deeper declines. A break below the important support near $56,250 could open the path for BTC to test $55,500.