BTC/USD has failed to clear resistance near $55,800, a level bulls need to breach to target $60k

Bitcoin continues to struggle for an upside following its recent downward correction. The cryptocurrency’s price against the US dollar remains largely unchanged over the past 24 hours as bears try to restrict action below the $55k level.

Buyers will need to regain the upper hand to prevent another dip. The technical outlook on the 4-hour chart certainly suggests BTC/USD is delicately poised, but the advantage is with the bulls.

Bitcoin price outlook

While the price might correct lower, some analysts are predicting fresh gains for Bitcoin in the short term.

According to Raoul Pal, the founder and CEO of Global Macro Investor, Bitcoin is “oversold” and the weekly RSI is printing levels last seen during the 2017 bull run. The analyst suggests that the corrections being witnessed helps to “refresh” the bull market.

Another analyst has pointed to the Stock to Flow (S2F) model, suggesting that Bitcoin is yet to top out. According to Rekt Capital, Bitcoin has previously peaked whenever the price moved above the S2F line. He predicts a new uptrend for BTC/USD once the benchmark cryptocurrency bottoms.

Bulls have managed to hold BTC’s price above the major descending trend line and the 0.618 Fib level. The MACD remains above the signal line, although it is weakening, and the RSI is above 50 to give buyers the upper hand.

Two main resistance levels likely to thwart bulls are at $55,971 and $58,078. If the price clears these barriers, it could accelerate beyond $60,000.

BTC/USD 4-hour chart. Source: TradingView

On the downside, another dip would see prices break towards the 50 SMA ($52,861). The main support zone is at the 0.786 Fib level ($50,864), but Bitcoin could trade as low as $47,000 if the correction extends beyond the $50k level.

This post was originally published on Coinjournal.