Bitcoin (BTC) has consolidated in recent weeks as emotions and speed have slowed to a creek point. This is very normal, because it is also impossible to throw a six at a time.
Therefore, consolidation and correction are needed to recharge the market before resuming the trend. There have been many reasons for this corrective measure in recent weeks, the most important of which is the sale of whales in addition to macroeconomic factors such as higher returns from the Treasury.
However, the bitcoin price has returned to a critical resistance area to continue. If this resistance zone is broken, new full-time points will be displayed again.
Bitcoin Critical Resistance Zone of $ 52,000
The BTC price is struggling to break through the $ 52,000 resistance zone, as shown in the chart above. This area of resistance is important for further gains, as it will open the door to $ 55,000-56,000 dollars.
Failure to break through this resistance zone again will be a source of concern for bitcoin traders and will open the door to retest the critical $ 46,000 level. This will also confirm further weakness in BTC / USD, as it remains 17% during its full time of $ 58,000.
However, the positive thing about this structure is the number of tests that the resistance area has passed. Since this resistance range has been tested many times, it should be weakened for each attempt.
Therefore, another test of the resistance zone should give more strength for the price eruption towards $ 55,000.
The dollar shows its strength along with 10-year interest rates.
The main reasons for Bitcoin’s weakness are the dollar return and the 10-year increase in government bonds.
However, as the diagrams show, both collections now face areas of resistance. It is unlikely that we will see much strength in the dollar as this critical area of resistance should continue. If the resistance range remains at 92.50 points, a new sample of the 91-point range is expected. Such a move is likely to increase the price of bitcoin.
Government bonds also face a significant potential for resistance, which should also prevent or at least stop any bullish momentum. In 2021, revenues will grow by almost 75%, which is a big leap overall. Consequently, bearish tests become more likely, especially when the return enters a significant resistance zone.
Therefore, reversal of dollar gains and returns should positively affect the bitcoin price. However, it is worth noting that a few things must happen first for BTC / USD to resume the uptrend.
Critical movements to monitor Bitcoin price
4-hour BTC / USDT chart. Source: TradingView
It is important that BTC successfully tilts the $ 52,000 level in support, instead of just breaking the $ 52,000 barrier, which actually happened on March 3, before the price bounced back.
If this reversal of resistance and support occurs, Bitcoin’s price is likely to rise rapidly to the $ 56,000 level. However, a failed break of over $ 52,000 would be a sign of weakness, which could be followed by a rapid decline. Thus, traders and investors should expect a possible crash of $ 46,000 or even $ 42,000 in the event of another fraud.