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Bitcoin price prediction: Bitcoin sets a higher high at $58,500, prepares to retrace

TL;DR Breakdown

  • BTC finds resistance at $58,500.
  • Some support found around $56,000.
  • Next target to the upside at $59,500.

Today’s Bitcoin price prediction is bearish as the market will likely continue retracing some of the gain seen on Friday. The first support is located around the $56,000 previous resistance. However, likely we will see BTC/USD retrace further.

Cryptocurrency heat map. Source: Coin360

The overall market trades with mixed results today. Bitcoin has retraced some of the gains seen over the past days and currently trades with a small loss of almost 1.5 percent for the last 24 hours. From the major altcoins, the best performance is seen for Solana (SOL) and VeChain (VET) with 9.75 and 6 percent gains, respectively.

Bitcoin price prediction: Bitcoin sets a higher high at $58,500, prepares to retrace

BTC/USD opened at $57,859 after moving sideways yesterday and setting a local high at $58,550. Right now, the Bitcoin price looks to retrace some of the gain and trades towards the closest support at $56,000, which previously acted as a strong resistance.

Bitcoin price movement in the last 24 hours

BTC/USD price moved in a range of $56,327 – $58,004, indicating a moderate amount of volatility. 24 hours trading volume has dropped to $40.9 billion, which is down by 21.65 percent from the previous 24 hour period. The total market cap stands at $1,064 billion, resulting in market dominance of 48.24 percent.

BTC/USD 4-hour chart – BTC retraces to retest $56,000 previous resistance as a support.

On the 4-hour chart, we can see BTC pushing lower over the past hours as bears want to retest previous resistance at $56,000 as support.

BTC/USD 4-hour chart. Source: TradingView

The overall market slowly regains bullish momentum after spending the past weeks retracing from the current all-time high of $65,000, set on the 14th of April. After Bitcoin price lost slightly more than 25 percent, a new low was set around $47,000-$48,000. 

After consolidating for more than 24 hours around the $50,000 price level, BTC/USD made a push lower and spiked to $47,000, where bulls immediately picked up any selling pressure. From there, Bitcoin rallied by around 20 percent until resistance was met at the $56,000 mark. 

Over the second half of last week, BTC retraced some of the gains until support was established at the $53,000 mark, as mentioned in our previous Bitcoin price prediction. On Friday, BTC/USD started rallying again and over the next 24 hours gained more than 10 percent. 

The bullish Bitcoin price action momentum peaked at $58,500 and set a strong higher high. Currently, Bitcoin retraces once again, with the previous resistance at $56,000 being retested as support. If this support holds later today, we should see a move towards the next resistance at $59,500 early next week.

Alternatively, if BTC moves below the $56,000 mark, we should further see BTC/USD retrace and spend the first days of next week in a consolidation. However, unless the previous swing low at $52,500 is not broken, we remain bullish for the overall price action development.

Bitcoin Price Prediction: Conclusion 

Bitcoin price prediction is bearish as the market looks to retrace some of the gains seen over the past days. However, the Bitcoin price action has shifted overall, and we expect further highs to be seen next week. Therefore, once BTC retraces, we expect another push higher towards the next resistance at $59,500.

While waiting for further Bitcoin price action development, see our guide on the best Bitcoin wallets and faucets for 2021. To learn more about one of the most popular forks of Bitcoin, see our article on Bitcoin Gold.

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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