BTC Closes In On $50,000 But Is The Uptrend To $55,000 Viable?
- Bitcoin price held support at the 50-day SMA on Monday, prompting bulls to retake control for gains above $55,000.
- A daily close above $55,000 might validate the uptrend to $55,000, but delays are expected in the hurdle between $52,000 and $53,000.
Bitcoin is on the verge of a breakout above $50,000 for the first time since September 6. On Monday, the largest cryptocurrency by market capitalization managed to crack through the supply zoned discussed around $48,000. At writing, BTC trades at $49,400 amidst a bullish building momentum for gains eyeing $55,000.
Is Bitcoin Ready For $55,000?
The technical picture on the daily chart shows the performance of Bitcoin after breaking out of a short-term falling wedge pattern. This chart formation is highly bullish and often leads to significant upward action. When confirmed, the falling wedge identifies entry and exit positions, allowing traders to make informed decisions. Usually, the asset will start a bull run following this pattern’s validation.
Currently, Bitcoin bulls have one task; to break the immediate barrier at $50,000. Once this hurdle is out of the way, attention is bound to shift to $55,000. Nevertheless, traders should be aware of the seller congestion between $52,000 and $53,000, a critical stumbling block in the first week of September.
BTC/USD Daily Chart
Meanwhile, the slightest resistance path is upward based on the applied technical indicators like the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI). The former recently sent a signal for traders and investors to buy BTC, and as it crosses above the mean line, the odds for a sustainable uptrend increase significantly.
The RSI upholds the bullish outlook as it moves to close the gap to the overbought area. Its continuous movement from September lows of 35 reinforces the growing bullish influence in the market.
Therefore, if the general technical picture remains intact in the coming sessions, we can anticipate a break to $52,000, if not to $55,000. Either way, buyers are required to close the day above $50,000.
Bitcoin Intraday Levels
Spot rate: $49,220
Trend: Bullish bias
Support: $48,000 and the 50 SMA
Resistance: $50,000 and $52,000