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Bitcoin Price Prediction: BTC Stacked Under Heavy Resistance At $56,500

Daily Bitcoin BTC Technical Analysis

3 Min Read
Last Updated April 29th 2021
  • The Bitcoin price sentiment has reversed from bearish to bullish.
  • The strongest resistance barrier lies at $56,500 which sees a confluence of the 20-day and 50-day SMAs.

Between April 16 to April 25, the Bitcoin price has crashed from $63,350 to $49,150 – losing almost $14,000 in its overall valuation. During this downward plunge, BTC managed to flip the 20-day and 50-day SMAs from support to resistance. Following that, BTC had two straight bullish days, wherein it jumped from $49,000 to $55,000.

 

The Bitcoin Price Faces Immediate Resistance At $56,500

After the $6,000 rise in Bitcoin price over the last two days, BTC couldn’t cross over the $56,500 resistance. While the overall sentiment is negative, technical analysis tells us that these signs are on the verge of turning positive.

  1. The MACD shows decreasing bearish market momentum.
  2. Jumping over $56,500 resistance will flip parabolic SAR from negative to positive..

Image: BTC/USD daily

BTC/USD daily chart 042921

Bitcoin price faces a massive resistance barrier at the confluence of the 20-day and 50-day SMAs ($56,500), wherein nearly 1.5 million addresses had purchased 668,000 BTC tokens.

Image: IntoTheBlock

BTC/USD volume chart 042921

Long-Term Supply On the Rise

BTC/USD lont term supply chart 042921

Glassnode shared the above chart along with this tweet:

“#Bitcoin supply held by Long Term Holders (LTH) usually needs to be spent to 'put the top in'. At 2017 top, LTHs had reduced their holdings from 74% to 58% of circ. supply Currently, coins accumulated in late 2020 are maturing and LTH owned supply is actually increasing > 67%.”

 

Nexon Snaps Up $100 Million Worth of Bitcoin

South Korea-based video game firm Nexon recently said that it had purchased $100 million worth of Bitcoin, paying on average $58,226 per coin. CEO Owen Mahoney noted that the move would protect shareholder value. He added that BTC offers long-term stability and liquidity too.

Our purchase of bitcoin reflects a disciplined strategy for protecting shareholder value and for maintaining the purchasing power of our cash assets. In the current economic environment, we believe bitcoin offers long-term stability and liquidity while maintaining the value of our cash for future investments. 

In December, Nexon's market cap surpassed $30 billion due to increasing demand for gaming. The platform is currently the second-biggest game developer whose shares are trading in Japan, behind only Nintendo.                  

The $100 million purchase is the biggest cryptocurrency investment of any company listed on the Tokyo Stock Exchange so far. It accounts for 2% of the company's cash pile. Earlier in April, Hong Kong-based beauty app Meitu also made another $10 million investment in crypto, bringing its total Bitcoin and Ethereum holdings to $100 million.     

 

Bitcoin Price Is Expected To Reach These Levels

The buyers will need to overcome the $56,500 resistance barrier to prevent a drop. Breaking past this line will turn market sentiment positive and push BTC into the $60,000 zone.

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