BTC/USD failed to clear resistance near $55,800, a level bulls must breach to target $60,000
Bitcoin continues to face headwinds after a recent downward correction. Over the past 24 hours, the cryptocurrency’s price against the US dollar has shown little net movement as sellers try to cap gains below the $55,000 area.
Buyers must reassert control to avoid a deeper pullback. The technical picture on the 4-hour chart indicates BTC/USD sits on a knife edge, but the short-term advantage still leans toward the bulls.
Bitcoin price outlook
Although a further correction remains possible, some analysts expect Bitcoin to resume gains in the near term.
Raoul Pal, founder and CEO of Global Macro Investor, says Bitcoin looks “oversold” and notes the weekly RSI is approaching levels last seen during the 2017 bull run. Pal argues that these corrective phases act to “refresh” the broader bull market.
The weekly RSI is close to the levels that we saw in corrections in the first part of the 2017 bull run, before bitcoin hit hyperspace. These are the pauses that refresh a bull market. pic.twitter.com/gWlivsebPv
— Raoul Pal (@RaoulGMI) April 25, 2021
Another analyst, Rekt Capital, referenced the Stock-to-Flow (S2F) model and suggested Bitcoin has not yet reached its peak. Rekt Capital noted that previous market tops tended to occur when price moved above the S2F line and expects a new uptrend once Bitcoin completes its current correction and finds a bottom.
BTC Bull Market tops occur when #BTC’s price deviates beyond the Stock to Flow line
S2F line will begin to flatten out in early May
So once #Bitcoin bottoms on this correction…
The next uptrend will likely be the one to perform that upside deviationhttps://t.co/mRRRDml9z8 pic.twitter.com/BU4RDhWEbz
— Rekt Capital (@rektcapital) April 27, 2021
Technically, bulls have defended BTC above a major descending trend line and the 0.618 Fibonacci retracement level. The MACD remains above its signal line, though momentum is fading, and the RSI sits above 50, which favors buyers for the moment.
Key resistance levels to watch are around $55,971 and $58,078. Clearing these levels could open the door for a quicker move toward and beyond the $60,000 mark.
BTC/USD 4-hour chart. Source: TradingView
On the downside, another decline would likely push prices down toward the 50-period simple moving average near $52,861. The main support area sits at the 0.786 Fibonacci level around $50,864. Should selling intensify and the $50,000 level fail to hold, Bitcoin could extend the correction toward roughly $47,000.