TL;DR Breakdown
- BTC retests $53,000 support.
- Bitcoin breaks below $56,000.
- Next support at $51,500.
Today’s Bitcoin price prediction is bearish as Bitcoin has lost 10 percent over the last 24 hours and has returned to the $53,000 support. Therefore, we could see Bitcoin push lower later this week and resume its bearish price action momentum.
The overall crypto market trades in the red over the last 24 hours. The market leader Bitcoin is down by 3 percent, while Ethereum trades with a loss of almost 1.5 percent as it retraces some of the gains seen over the past days. Dogecoin is among the best performers as it moved counter to the overall market and is up by more than 50 percent. A similar solid performance was set by Chainlink and Litecoin as they are up by 27 and 16 percent, respectively.
BTC/USD opened at $53,241 today after a strong push lower yesterday from $57,000 resulted in a retest of the $53,000 support. Therefore, the Bitcoin price action has started to become bearish again. This could lead to another major push to the downside later this week, indicating that the overall several-month bullish momentum has likely ended.
Bitcoin price movement in the last 24 hours
BTC/USD price moved in a range of $52,969 – $56,626, indicating substantial volatility. The 24 trading volume has increased by 21 percent and totals $68.7 billion. Meanwhile, the total market cap stands just above the $1 trillion mark, resulting in a market dominance of 45.35 percent.
BTC/USD 4-hour chart – BTC retraces 10 percent, and retests support at $53,000
On the 4-hour chart, we can see Bitcoin bouncing from the $53,000 support over the past hours as a lower local high is set.
The overall Bitcoin price structure saw some recovery over the past weeks after strong support was found at the $48,000 mark on the 23rd of April. From there Bitcoin recovered some of the massive loss seen in the second half of April, during which a drop from the $65,000 all-time high resulted in a loss of over 25 percent.
The initial push higher over the last week of April resulted in a gain of almost 20 percent, with the $56,000 mark serving as a strong resistance. After some consolidation, Bitcoin retraced to the $53,000 mark, which currently holds the market from moving any lower. On the 29th of April, BTC/USD spiked higher again by 10 percent, leading to a strong higher high at $58,500.
From the $58,500 high, BTC/USD made a slight retracement to retest the $56,000 resistance as support. Another attempt to move higher was made on Monday. However, this time only a slightly higher high was set at $59,000, indicating exhaustion for further upside.
Over the past days, the Bitcoin price momentum shifted to bearish again as a strong push lower was seen yesterday. Bitcoin found support at the $53,000 mark, indicating that the overall price structure is slowly turning bearish again. Therefore, we could see further downside over the upcoming days, with the next support level seen at $51,500. First, BTC/USD will likely retest the $56,000 mark as a resistance.
Bitcoin Price Prediction: Conclusion
Bitcoin price prediction is bearish as the market has retraced 10 percent over the past few days after failing to set a strong higher high on Monday. Right now, BTC/USD tests the $53,000 support again, if it is broken, we expect another sharp move to the $51,500 support over the next 24 hours, which would further indicate that a medium-term bearish momentum has taken over.
While waiting for further Bitcoin price action development, see our guides on Bitcoin wallets, ETFs, and mining pools.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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Source: https://www.cryptopolitan.com/bitcoin-price-prediction-2021-05-05/
