Bitcoin has been on a tear in the past few months. The cryptocurrency has hit one all-time high after another, leaving many people thinking that it will continue to go up forever. The fact is, however, that the price of a single Bitcoin could soon dip below $53,000. So, what’s behind this?
This past Monday, Bitcoin and other cryptocurrencies got a nice boost from the SEC’s decision to postpone the ruling on a Bitcoin Exchange Traded Fund (ETF) until September. The price of Bitcoin quickly went up from $53,000, briefly reaching $57,000 before returning to around $53,000.
The leading crypto-currency has lost its bullish momentum and is in danger of falling below the critical $53k support.
Bitcoin performed well this week and managed to make up most of last week’s losses. However, the leading cryptocurrency seems to be losing ground, stagnating near $54k in recent days.
Technical indicators for the cryptocurrency point to the beginning of a consolidation phase as bulls struggle to return towards the $60k level. As a result, bitcoin is in danger of falling below $53k after slight losses over the past 24 hours.
Analyst Michael van de Poppe believes the consolidation phase is good for bitcoin and is part of an upward cycle.
Overall, I think #Bitcoin will consolidate for a significant period of time.
In fact, this is a very good thing, as healthy consolidation periods are part of the bullish cycle.
You can’t always throw six.
– Michael van de Poppe (@CryptoMichNL) 28. April 2021
BTC Price Forecast
Over the past 24 hours, bitcoin has returned to bearish mode. It has fallen 2% in recent days and technical indicators suggest that another decline is imminent. A look at the 4-hour chart of BTC/USD shows that the cryptocurrency is trading below its 100-day simple moving average ($56.322). The fact that the bulls are struggling to reach the 100 SMA suggests that the bears have not yet lost control of the market.
4 hour chart of BTC/USD. Source: Coincide
The MACD line is slightly bullish, which is understandable as bitcoin has shown a net positive trend over the past week. However, if the current trend continues, bitcoin will have to defend the $52,786 support level to avoid further losses. A prolonged bear market could see the BTC/USD pair fall back to the 47-USD level. Either way, bitcoins strong support areas at $44,850 and $43,016 will be hard for the bears to break.
However, on a breakout, bitcoin could try to break through resistance at $57,558 and head back towards $60,000. Although technical indicators suggest this is unlikely at this time, bitcoin could experience a sustained rally that takes it to a new all-time high above $64,000.
This source has been very much helpful in doing our research. Read more about bitcoin price resistance and let us know what you think.
Frequently Asked Questions
Why Bitcoin price is suddenly reduced?
The price of bitcoin has been on a slide recently. After hitting $20,000 in late January 2018, the price of bitcoin has decreased significantly. According to CoinMarketCap , the highest price bitcoin has reached in the past seven days was $15,091. Most of the top 100 cryptocurrencies have experienced a price decline in the past seven days. In the past week, the price of ethereum has dropped from $1,300 to $937. The price of bitcoin has been sharply reduced over the past few weeks, with the currency plunging below $ 2000 for the first time since September, 2017. The reason is still unknown, but some analysts have suspicious of the activities of the US Securities Securities and Exchange Commission (SEC). The SEC has been monitoring the largest exchanges in the world for months, and their latest actions have led to some of them being delisted from the market. First, the SEC took action against Bitfinex, which was forced to delist some of the largest coins, including Dash, IOTA, and Augur. Days later, the SEC took action against Binance, which also removed Dash, IOTA, and Augur from its platform.
Do you lose money if Bitcoin goes down?
Like any other currency, the value of Bitcoin is determined by how much people are willing to exchange it for. If someone in a given country wishes to be paid in Bitcoins, and no one else is willing to accept Bitcoins in exchange for goods or services, the value of the currency may go up. In the past, this has lead to situations where people have essentially printed their own money, leading to the devaluation of their currency and a potential net-loss for everyone else holding that currency. Bitcoin has exploded in popularity in recent years. It’s a digital currency with no physical form and no central bank. Bitcoins are created and traded independently by a community of people who are passionate about the technology. Despite its rapid rise, it’s still unclear whether bitcoin is really the future of money. Or how long it’s going to last.
Will Bitcoin go up or down after halving?
Bitcoin is a digital currency also known as cryptocurrency, which has been on a wild ride lately. A surge in value late last year coincided with a surge in media attention, which has left many regular Joes wondering what the hell an “altcoin” is, and how to get in on the action. (As a sidenote, don’t buy into an “etherum price” hype. It’s a bubble. This article will tell you why.) Bitcoin prices have been soaring, halving is just a couple of weeks away. The halving involves slashing the block rewards by half. Some say the halving will be the tipping point for Bitcoin, others say the price may even go up. What do you think will happen to the price of Bitcoin after the halving?
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