The crypto-currency market suffered massive losses last week, but prices are starting to recover.
Global financial markets suffered some losses last week following the discovery of the Omicron coronavirus variant in South Africa. Investors were worried about the possible effects of another global lockout, which led to the crypto market losing billions of dollars.
The price of Bitcoin fell below the $55,000 level for the first time since October. Over the weekend, Bitcoin was trading just above the $54,000 mark. However, the market has begun to recover and the leading crypto-currency is currently trading above $57,000 per coin.
Key levels to watch
The BTC/USD 4-hour chart is currently bullish after the crypto-currency has performed extremely well over the past few hours. Bitcoin is up over 5% in the last few hours and could rise before the end of the day.
The MACD line is moving out of negative territory and will soon be neutral. Thus, indicating that Bitcoin is suddenly becoming bullish. In addition, the RSI is at 58 and Bitcoin may soon reach the oversold level.
What to expect
Bitcoin could rally after its latest performance. If BTC maintains its current momentum, then it could break above the first major resistance level at $58,759 in the next few hours. If there is a prolonged bullish performance, Bitcoin could break above the $60,000 level in the next few hours and head towards the second major resistance at $60,970.
However, the bears have not completely relinquished control of the market and the price could fall further. If the negative trend returns, BTC could be forced to defend the $54,206 support level over the next few hours. Unless there is a massive sell-off, BTC should avoid the $53,378 support level before the end of the day.