Bitcoin Correction and Long-Term Forecast
Bitcoin (BTC) is currently experiencing an upward correction following a crash on May 1, 2024. The cryptocurrency hit a low of $56,711 as bulls took advantage of buying opportunities. By May 4, Bitcoinโs price had surged to the 21-day Simple Moving Average (SMA) or resistance level at $64,644.
Analysis of Bitcoin Price Movement
โข Bulls have been buying dips over the last 48 hours but have struggled to maintain their upside momentum above the 21-day SMA.
โข Bitcoin could reach a high of $66,000 or above the 50-day SMA if it clears the initial hurdle at the 21-day SMA.
โข A break above the 50-day SMA may propel the cryptocurrency to its previous high of $73,666.
โข Conversely, rejection at the 21-day SMA or the $64,000 barrier could lead to a decline in Bitcoinโs price, testing previous lows of $60,870 and $59,810.
โข Currently, the BTC/USD price stands at $63,273.
Bitcoin Price Indicators
โข Bitcoin briefly exceeded the 21-day SMA before experiencing a decline.
โข The battle for control of the 21-day Simple Moving Average is ongoing between the bulls and bears.
โข The price bars on the 4-hour chart are above the moving average lines, indicating a potential upward trend despite setbacks.
Technical Analysis and Support Levels
โข Key resistance levels are identified at $70,000 and $80,000.
โข Key support levels are noted at $50,000 and $40,000.
Future Outlook for BTC/USD
โข Bitcoin is currently in a recovery phase, approaching the $64,000 resistance level.
โข After retesting its previous high, the cryptocurrency is undergoing a mild correction, hovering above the $63,000 support level and fluctuating below the resistance point.
โข If Bitcoin surpasses the 21-day SMA, its value is likely to increase.
โข At present, Bitcoin is trading slightly above $63,000 with doji candlesticks forming.
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