Bitcoin (BTC) Price Analysis: Token Struggles to Surpass Crucial Resistance Zone Above $57200

After a brief recovery, sellers have begun to exercise more pressure over the token, due to which the price has dropped marginally

Bitcoin price encountered a crucial resistance zone around $57,200 after a brief recovery, putting sellers under more pressure and causing a slight price decrease.

Meanwhile, the German government continues to transfer BTC to exchanges, which could put further downward pressure on the token.

As soon as Bitcoin, the star token, entered a crucial resistance zone above $57,200, market participants grew optimistic about the upcoming trend. Moreover, these levels had previously provided a strong foundation, leading to the belief that a clear passage through the zone would trigger a fresh ascending trend. However, the bulls are encountering significant difficulty in crossing the zone, as the bears appear to have stationed themselves at a crucial resistance point.

The recent pullback suggests that the bears still have a strong grip on the rally, and as mentioned in our previous blog, the BTC price may not be over yet. Many traders are paying close attention to the star crypto due to concerns about a substantial plunge, which is prompting them to close their positions. Nevertheless, Bitcoin is attempting to secure a critical resistance, which could turn the tables for the token.

During yesterday's trade, the BTC price attempted to break above the crucial resistance at the 200-day MA. The bulls were unable to do so, resulting in a bearish close for the day followed by a strong combat with the bears since the early trading hours. Despite the growing bearish influence, the tokens remain stuck within the support zone, reviving the bullish expectations in the coming days. However, the technicals suggest a minor pullback could be on the horizon which may drag the levels towards new lows.

The DMI (direct movement indicator), which helps identify the trend of the rally, seems to be preparing for a bearish spell. Both +Di & -Di is preparing for a bearish crossover as the ADX is plunging. As the strength of the rally may drop in the coming days, the price is expected to remain consolidated below $60,000 for a while. If the Bitcoin bulls manage to break above the 200-D MA at $58,971.70, then the BTC price may begin with a fresh ascending trend to test the higher resistance.

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