Following the successful breaking of the $40,500 resistance, the Bitcoin (BTC) price is set to attain the next psychological price level of $50,000.
For the past week, Bitcoin has been fluctuating between $44,000 and $48,000. Bitcoin bulls have retested the $48,000 resistance thrice but unable to push above it. Consequently, BTC price will slump to the $44,000 low, each time it faces rejection from the recent high.
The bulls have the advantage to break the current resistance level. Assuming, the bulls break the resistance at $48,000, the bullish momentum will extend to the $50,000 high. Bitcoin will rally to the next psychological price level once it breaks the $50,000 high. Nevertheless, BTC’s price is still fluctuating between the $44,000 and $48,000 price levels. If the bears break the $44, 000 support level the king coin will resume a downtrend.
BTC price is still trading in the overbought region as it falls to level 68 of the Relative Strength Index period 14. As long as the bullish trend line remains unbroken, the cryptocurrency uptrend is said to be ongoing. The price is below the 40% Range of the daily stochastic. This indicates that the market has bearish momentum.
Major Resistance Levels – $48,000 and $50,000
Major Support Levels – $40,000 and $38,000
Bitcoin price is fluctuating below the $48,000 resistance The Fibonacci tool has indicated an upward movement of the cryptocurrency. On February 9 uptrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. The retracement indicates that BTC will rise to level 1.618 Fibonacci extensions. That is the high of level $55,103.80. The market will continue to rise if the bullish momentum is sustained.
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.