Bitcoin on Monday (April 26, 2021) snapping five-day's losses, gained by as much as 8 percent. Nonetheless, the largest cryptocurrency has come off almost one-fifth from its all time high levels hit earlier in the month.
From last week's bitcoin's price of below $50000, the digital token rise to an intra-week high of $57500. The sell-off saw Bitcoin fall through the 23.6% FIB of $50,473 and the first major support level at $49,505 to end the week at sub-$49,200 levels.
Other major crytpos such as the Ethereum and XRP that move in tandem with bitcoin were up around 5 percent and 11 percent, respectively.
On Friday, there was seen a sharp fall in bitcoin after the US President Joe Biden proposed to raise capital gains tax on high income earners. The move that could curb investments in digital assets.
Bitcoin price outlook for the week ahead:
Bitcoin would need avoid a fall back through the $51,247 pivot to support a run the first major resistance level at $55,382. And support from the broader markets shall be needed for Bitcoin to break back through to $55000 levels.Barring an extended crypto rally, the first major resistance level and last week's high $57,500.0 would likely cap any upside.
In the event of an extended breakout, Bitcoin could test resistance at $60,000 before any pullback. The second major resistance level sits at $61,635.