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.
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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.
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.
This news was brought to you by Phemex, our preferred Derivatives Partner.
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