Bitcoin Must Hold Critical Support to Hit New Highs

Bitcoin has reached a pivotal support zone that will determine whether it rises to new all-time highs or retraces to $51,000.

Bitcoin Must Hold Critical Support to Hit New Highs
Shutterstock cover by MarkoAliaksandr

Key Takeaways

  • Bitcoin has gone down nearly 6.6% in the past few days.
  • Now, the $54,700 support level must hold to avoid further losses.
  • The emergence of a buy signal on the four-hour chart could help BTC rebound.

Share this article

Bitcoin had a strong start to the week, but it has shed most of the gains incurred due to a spike in selling pressure. Now, the leading cryptocurrency must hold above a crucial support level to march toward new all-time highs.  

Bitcoin at Make-or-Break Point

Bitcoin needs to hold support to maintain bullish momentum.

The top crypto asset opened the weekly trading session on a positive note. It gained over 3,200 points in market value to reach a high of $57,880. A recent spike in profit-taking saw BTC retrace by nearly 6.6%, generating over $79 million in liquidations worth of long positions.  

Although bulls have been shaken out during the recent correction, Bitcoin appears to have reached a crucial support level. 

The four-hour chart shows that the 50 four-hour moving average is currently holding BTC at $54,700. Meanwhile, the Tom DeMark (TD) Sequential indicator has presented a buy signal in the form of a red nine candlestick within the same time frame. Such market behavior suggests that BTC could be bound for a one to four candlesticks upswing or the resumption of the uptrend.  

As long as the 50 four-hour moving average at $54,700 holds, Bitcoin could rise to retest the recent high of $57,880. However, a decisive close above this resistance level could see prices advance further toward the mid-April all-time high of $64,900.

Bitcoin has recovered from the recent dip in the last few hours; it’s currently trading back above $56,000.

Bitcoin US dollar price chart
Source: TradingView 

It is worth noting that Bitcoin bulls will be looking to avoid a four-hour candlestick close below the 50 four-hour moving average. Breaching this critical support area could lead to a sell-off that pushes BTC toward the 100 or the 200 four-hour moving average. These demand barriers sit at around $51,000 and $47,000. 

Disclosure: At the time of writing, the author of this feature owned BTC. 

For more key market trends, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.

Share this article