Bitcoin Dropped Below $57,000 Support Level – Will Continue Lower?


Bitcoin bears have regained momentum after rejecting $60,000 to $59,500 resistance level. Bitcoin dropped below $57,000 most significant support area. Will BTC continue further lower in the coming days? What are the charts and technical indicators are saying? Read on to find further insights into today’s BTC/USD Technical Analysis. 

April 8, 2021, | AtoZ Markets – Bitcoin price rose today morning during the Asian session against the U.S. Dollar. After bouncing from $57,000 to $57,500 support level, the bulls pushed the price upside quite impulsively, but failed to sustain the bullish pressure over $59,500 to $60,000 psychological resistance level. Bitcoin is currently trading around $56,800 area and trying to push downside. As per the current price action, the price may face strong resistance at the dynamic level of 20 EMA on the intraday chart in the coming days.

Bitcoin Dropped Below as the Investor’s Sentiments Working Negatively

Bitcoin is currently residing near $56,800 area and trying to decline further. However, the price also broke below the dynamic level of 20 EMA on the daily chart.

Bitcion Dropped Below

Image: Bitcoin 4 Hour Chart

According to the 4-hour chart, Bitcoin dropped below and currently trading around $56,800 area. As per the current price action, if the price can have an impulsive 4-hour bearish candle close below $57,500 to $57,000 area, the bears may push the price downward towards $55,200 to $55,000 area in the coming days. Alternatively, if the price can break above $57,000 to $57,500 area with an impulsive bullish candle, the price may climb towards $59,500 to $60,000 area again the process.

Furthermore, the dynamic level of 20 EMA is currently residing over the price. So, it may work as strong resistance to push the price downside. However, the bulls may continue further upward if the price can break above the dynamic level in the days ahead. Besides, the Stochastic Oscillator lines are currently residing above the oversold level 20 and had a bullish crossover. It indicates that the bulls may sustain the bullish pressure further in the coming days.

BTC May Decline Further Lower

According to the daily chart, Bitcoin dropped below and currently trading around $56,800 area. As per the current price action context, if the price can have an impulsive daily bearish candle close below $57,500 to $57,000 area, BTC may decline towards $55,200 to $55,000 area as a first target. The second target will be $50,500 to $50,000 area if the price can break below $55,200 to $55,000 area in the coming days.

Bitcion Dropped Below

Image: Bitcoin Daily Chart

In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price down. Along with this, the MACD lines are currently residing above the 0.00 level and gradually sloping downside. It indicates that the bears may sustain the bearish pressure further in the process.

To conclude, after an extended period of volatility, the price has broken below $57,500 to $57,00 psychological support level with a daily bearish candle. Another daily close will help to identify the definite momentum in the coming days. 

Share Your Opinion, Write a Comment