Bitcoin has recorded around 1% gain after the disappointing drop the digital asset has been facing in the last few days. The recent price drops are due to the growing selling pressure that remains dominant in the industry. Whenever cryptos see declines, some short-term investors sell their holdings to secure profits already gotten from the asset. This is common in the digital asset industry as holders understand the unpredictability of these virtual investments.
While experts believe that Bitcoin cannot have any drastic drops due to high-net-worth investors’ presence, there is no guarantee that the digital asset would not see more all-time lows. Bitcoin had touched very delicate support when it hit the $52,000 mark. Instead of declining, a reversal occurred, and the asset began to see notable gains, which shows that it’s on its way to retake its peak.
Bitcoin moves into the green zone
Yesterday, Bitcoin continued in the green zone, and the movement shows that bulls are dominant in the market. The crypto went from the week-long low of $51,000 to a new high. The recovery has returned the space’s potential for growth during this period. The crypto’s key resistance holds at $58,000, $59,000 and $60,000. On the other hand, the support holds around $48,000, $46,000, and $44,000. The support level is likely to hold the asset even if bears appear due to the prominent bullish strength.
The news gains show that Bitcoin would likely be heading towards the $60,000 before it would face another correction, which usually happens when assets have gained significant value within a short period. Bitcoin returned its previous resistance of $54,000 to its support, and the mark is already making some gains as the asset goes towards $55,000.
For the next few days, the crypto would likely uptrend based on new reports on charts. Still, buyers are not active, and their action is required for Bitcoin to reach its next level. Currently, the slower moving average is above the 21-day MA, and this situation would likely work in favor of the market.
BTC’s next stop would likely be $58,000
If the crypto manages to move above its current level, it would help the market record new gains and ignite another world of highs. Before a possible reversal controls the market, the asset’s next stop would be around the $58,000 mark. Another important thing to note is the support level keeping the crypto afloat around the $48,000 mark. The crypto’s movement must not hit the support, or it should expect long-term declines.
The asset is seeing a bullish bias, and that is why technical indicator RSI (14) is moving over the current 60-level, which shows that buyers are regaining some dominance in the ecosystem. When the asset retakes the $55,000 mark, it would likely see a necessary correction required to retake 5he $56,000 support. The current position might be technical as a sudden market reaction would cause a price fall or gain. In the meantime, Bitcoin would likely keep moving up the charts till it hits support and overtakes it.