Bitcoin (BTC) price has yet to reach new full-time highs above $ 60,000 this week. After breaking more than $ 58,000, it appears that the negative news from India, combined with the general macroeconomic weakness and an improved US dollar, has halted the rally.
This resulted in a withdrawal of $ 53,000 on March 16th. This is a natural move as the beef markets usually move in waves. In other words, the market will find a new equilibrium between buyers and sellers, and then it will decide where to go next.
Overall, there is a huge increase in the market as the price of bitcoin rose from $ 11,000 to $ 60,000 in just six months.
Bitcoin cannot break $ 60,000
The 4 hour chart is showing clear support at $ 53,000, which is down. The upside is shown on the 4-hour Bitcoin chart.
This bullish continuation encountered next major resistance from $ 58,800 to $ 60,000. This is the last major resistance level before the next impulse for $ 68,000.
Yesterday, however, Bitcoin price failed to breach this resistance area, bringing it back to its previous range. The upper limit for this range is between $ 58,800 and $ 60,000, and the lower end range is between $ 54,000, $ 55,000, and $ 53,000.
The pressure is likely to build up and trigger a breakout as long as the bitcoin price remains in this area.
The BTC / USD is still bullish on the daily timeframe
The daily chart for BTC / USD is showing a strong trend that has been noticed for the past six months now. This is confirmed by higher lows and higher highs. Since the last drop of $ 42,000, any price above this level means that the beef market is not at risk.
On the other hand, the Relative Strength Index (RSI) is showing bearish divergence, albeit invalid. A bearish divergence takes effect when the former resistance areas become resistance again, and most importantly, when the bitcoin price begins to fall to its lows.
Thus, the $ 50,000 area is an important area to look at, as it will be a new higher low. However, even if you lose $ 50,000, the last pillar can be found at $ 42,000 and the 21-week moving average.
As long as these areas continue, this trend should continue. This should push the bitcoin price to $ 68,000, as this is the next Fibonacci level to watch.
The total cryptocurrency market value is $ 2 trillion
The daily chart of the total cryptocurrency market cap shows a similar structure to the bitcoin price.
In this regard, the main support for warehousing is $ 1.5 trillion. As long as this continues, the cycle is very likely to continue to $ 2 trillion. The next Fibonacci level is between $ 2 and $ 2.1 trillion, nearly three times the previous record in 2017.
Possible scenario for bitcoin
One possible scenario for Bitcoin’s price is additional sideways movement such as the BTC / USD contracts. To do so, the market must test the mentioned support and resistance levels again in the current area.
After these tests, the cohesion will stop, and a new impulse may start. In that respect, the $ 60,000 barrier may act as resistance for some time. Thus, a revisit of the $ 55,000 area is still on the table while the $ 60,000 acts as resistance.
Maintaining the support level at $ 55,000 opens the door to $ 68,000 as a next point of interest.