Bitcoin Retests Key Support Level as $53k Threshold Looms

The rate of Bitcoin is floating about $53,657 since composing, with bulls fighting for control amidst sell-off stress. The benchmark crypto asset is down 3.2% and also virtually 15% over the past 24-hour and also 7-day time frames specifically.

Bitcoin has dropped to $53,800, with the technical overview recommending additional decreases to lows of $51,540 seen on 18 April

In spite of attempts for a quick recuperation, bears have restricted prices below the 50-day and also 100-day moving averages. This suggests that a downside continuation might see BTC drop in the direction of recent lows.

Bitcoin rate overview

While Bitcoin’s rate is vulnerable to a fresh downside, crypto analyst Rekt Capital suggests that what the marketplace is seeing is a retracement, not a correction, and that such dips tend ahead in multiples and also range around 10% -25%. This is not the situation yet, however.

#BTC backtracked -21% lately

Technically, this is still not a #Bitcoin modification

Corrections have a tendency to be -30% to -40% deep

Dips are a lot more typical than adjustments & tend to be sharper and shallower

In 2017, $BTC experienced 12 dips

These dips ranged between -10% and -25%.

— Rekt Capital (@rektcapital) April 21, 2021.

The technical picture for BTC/USD supports the short-term adverse expectation.

BTC/USD hourly graph.

BTC/USD is trading within a descending triangle pattern, with the RSI securely listed below the 50-point mark to suggest bears remain in control.

A feasible rebound, as recommended by the look of a hammer candle, has stalled after bulls faced resistance at $54,893. Current gains were also topped around the 50-day relocating average (MA) ($ 55,338) and 100-day MA ($ 55,580).

A look at the per hour chart reveals that indecisiveness seems to be resolving downwards as BTC/USD courts brand-new losses near $53,800. If bears succeed in pushing rates listed below this line, the next demand area is most likely to be at the channel support line near $53,300.

Bitcoin could soon decrease to $52,000, with the next main assistance level found at $51,500.

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