Bitcoin will correct back to the $ 50K zone if the $ 58K barrier is not broken

Bitcoin will correct back to the $ 50K zone if the $ 58K barrier is not broken


2021-03-24 02:44:00

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Bitcoin is very close to breaking out of an all-time high at $ 58,330 established in February. However, sellers appear to be keen to book profits around the current area, opening the door for new corrections. . At the time of writing, BTC is trading right in the $ 57,000 zone after a small correction from its weekly highs of over $ 58,000.

If BTC completely fails to break through the key hurdle at $ 58,000 then it risks forming two patterns of extreme bearishness; a bipedal and a rising wedge. A double high is created after the asset has risen to the top twice, separated by a bottom. When the second peak fails, a significant trend reversal will occur as a result of meeting the resistance zone.

On the other hand, the rising wedge pattern forms after an asset has increased significantly. It is illustrated using two converging trendlines, which run from the asset’s base price to its high. When trend lines converge, a correction usually takes place.

And if either of these patterns is confirmed then Bitcoin could correct back to $ 50,000, whereby buyers would launch another run to record highs. The MACD has slowed the uptrend, which shows that the buyers are losing their push. If the MACD (blue) line crosses below the signal line on the 4-hour chart, we could see Bitcoin continue to make a significant correction.

Note that there are some strong levels of support to help prevent losses below $ 50,000. Some of these supports are marked at $ 56,000, $ 54,000, and the 50 SMA just below $ 52,000.

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