Today, the Bitcoin (BTC) price broke above the $50,000 resistance level. Buyers achieved this feat after two unsuccessful attempts at this resistance. The bulls were rejected at $49,400 and $49,788 as they tried to break through the recent high.
The bullish scenario states that Bitcoin is capable of reaching the $51,000 high if the bullish momentum is maintained. However, the BTC price is facing minor resistance above the $50,000 level.
The current resistance is due to Bitcoin reaching the overbought area of the market. Nevertheless, the overbought condition may not last in a market with a strong trend. If the current resistance is overcome, Bitcoin will rise to the high of $51,000. At the $51,000 price level, buyers will face tough resistance if they want to push the cryptocurrency higher. The bottom line is that a rise to $55,000 is likely if a breakout occurs. On the other hand, if the bulls fail to convincingly break the $50,000 level or the cryptocurrency turns around from the recent high, the bullish scenario is a foregone conclusion.
Bitcoin's upside is doubtful according to price indicators. The Relative Strength Index has shown that bitcoin has reached 69. It suggests that the cryptocurrency will be overbought at level 70. The daily stochastic is also above the 80% range. The price bars are above the moving averages, indicating further upside.
Major Resistance Levels - $65,000 and $70,000
Major Support Levels - $40,000 and $35,000
It is likely that Bitcoin will make an upward move when the BTC price breaks above the current resistance level. Meanwhile, the uptrend from August 21 has experienced a candle retracement that tested the 78.6% Fibonacci retracement level. The retracement suggests that Bitcoin will rise to the 1,272 Fibonacci Extension level or $51,350.20.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.