Bitcoin Breaks Psychological Price Level, Poises to Reclaim $58,000 High

Bitcoin bulls have sustained the current bullish momentum for the past 48 hours as bulls broke the $50,000 psychological price level.

The uptrend will continue if price breaks and closes above the resistance level. This will be the second time the $50,000 resistance will be broken. In the first instance, the price rallied to the $58,000 high. However, the bulls could not continue with the uptrend because Bitcoin’s price has traded in the overbought region for the past two weeks. 

In today's breakout if the bulls are successful BTC price will rally above $52,000 high. The bottom line is that there will be stiff resistance at the next target price of $52,000. On the upside, the upside momentum will resume above the $52,000 high. Conversely, if the bulls are repelled at the $52,000 resistance, Bitcoin will be compelled to a sideways move between $44,000 and $52,000. Meanwhile, the price has risen to $51,251 at the time of writing.

Bitcoin indicator reading  

BTC price is approaching the trend line to break above it. A breakout above the trend line will facilitate the upward movement of the market. Presently, Bitcoin is at level 58 of the Relative Strength index period 14. It is in the uptrend zone and has room to rally on the upside.

Technical indicators:  

Major Resistance Levels – $60,000 and $62,000

Major Support Levels – $45,000 and $40,000 

What is the next direction for BTC/USD?

The BTC/USD is poised to resume an upward move as price breaks the psychological price level. The Fibonacci tool has indicated an upward move of BTC price. On March 2 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the market will rise to level 1.618 Fibonacci extension or the high of $54,368.90.

Disclaimer. This analysis and forecast are the personal opinions of the author and 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.