The Unusual Bitcoin Resistance,
Bitcoin regains strength after a stiff resistance at $ 56K: Traders rally to recover from their previous ‘losses’
After facing resistance around $ 56,000 and $ 58,000 in the past week, we can now see the popular virtual currency to be gaining its market support. It’s estimated that BTC has made a massive market pullback by roughly 38% from the previous unusual trend.
According to the hourly relative strength index (RSI) report released on May 4, BTC faced a tight selling pressure leading to a drop by -1.58%. This follows as other currencies such as Ethereum +0.38%, XRP +1.38% dominated the market.
What lead to the BTC comeback………..
The pullback comes barely after US Treasury Secretary Janet Yellen toned down her previous comments, which had earlier shown a likely hike in the interest rates in the crypto market. Her comments sent fear among many traders leading to the BTC market stalemate.
However, in her May 5 speech, Yellen made a clarification that gave Bitcoin an upper hand in the trade, claiming support and the consequent pullback of $60 000.
According to the relative strength index (RSI) chart, BTC had earlier dropped by 5%. However, it gained stabilization by only 2-3%. Despite the selling rushes seen in the Bitcoin market, experts note that a future drop is a likely event that will obviously lead to another resistance.
Even if this notification is anything to go by, traders still have nothing to fear as the experts estimated the future BTC resistance to be around $60 000- $62 000.