Bitcoin Bounces Back But Faces Stiff Resistance Ahead
Crypto Briefing | Apr 27, 2021 01:48AM ET
Bitcoin has yet to regain a critical resistance level as support to mark the end of the recent corrective period. Bitcoin is back in the green despite last week’s bearish shakeout. With new support found, BTC now looks like it could retest the $57,000 resistance level. A new wave of fear, uncertainty, and doubt struck the cryptocurrency market after Bitcoin rose to a new all-time high of nearly $65,000 on Apr. 14. A power outage in Xinjiang, China that to double capital gains taxes, caused panic among investors.
Santiment the highest levels of pessimism in months as Bitcoin prices tumbled.
The behavioral analytics platform affirmed that “FUD had gripped” the cryptocurrency industry as market participants were at the “most fearful level” since Sept. 26.
Interestingly enough, Tether's market capitalization surged by 10% to surpass the $50 billion mark while investors trembled with fear.
Such a bullish divergence between USDt’s market share and Bitcoin’s price is usually seen as a sign that the market is primed to rebound.
h2 Leading Cryptocurrency Rebounds Strongly/h2BTC’s daily chart seems like these fundamental aspects aligned with several technical factors that helped kick prices off with a bang.
The 100-day moving average and the Tom DeMark (TD) Sequential’s setup trendline served as a demand barrier that prevented Bitcoin from dropping further. Meanwhile, the TD presented a buy signal in the form of a red nine candlestick, anticipating that BTC was bound for a bullish impulse.
Get The News You Want
Now that the flagship cryptocurrency has risen by more than 9% since Monday’s trading session began, it may have more room to go up.
The 50-day moving average at $56,850 is the only resistance barrier ahead that could impede Bitcoin from resuming its uptrend.
Only a daily candlestick close about this trend-following indicator can serve as confirmation that the correction is over and BTC will reach higher highs.
Failing to close above the 50-day moving average could lead to a retest of the $47,000 support.
It is worth noting that the area between $46,000 and $40,000 represents a significant demand barrier. This interest zone comprises the 20-week moving average at $45,660, Feb. 28’s low of $43,000, and Jan. 8’s high of $42,125.
Thus, further price depreciation may prove challenging.
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.