Breaking: Bitcoin flirts with $50,000 as momentum builds for another leg up
|- Bitcoin briefly trades at $50,000 on some exchanges as bulls eye highs towards $60,000.
- Higher support is needed to ensure that Bitcoin sustains the uptrend.
- Declines back to $46,000 support will come into the picture if Bitcoin the channel’s middle support caves.
Bitcoin has, for the first time in history, traded at the $50,000 mark on some exchanges. The journey to this incredible milestone became apparent over the weekend, but bulls lost steam. The flagship cryptocurrency was forced to retreat to $46,000, allowing more buyers to join the bandwagon.
The arrival to this round figure comes at a time the entire cryptocurrency market is building momentum. For instance, Ethereum is back to trading above $1,800 while focusing on a breakout to $2,000.
Bitcoin must cling to support above $50,000
After reaching this milestone, Bitcoin must sustain the trend above $50,000 to continue with the remaining half of the journey to $100,000. For now, the least resistance path is upwards amid widespread gains across the market.
The Moving Average Convergence Divergence (MACD) is on the verge of flipping bullish. This is a technical indicator that follows the direction of the trend and measures its momentum. A call to buy comes into play when the MACD line (blue) crosses above the signal line.
Bitcoin is also trading within the confines of an ascending parallel channel. The price is holding above the middle boundary support. As long as the BTC stays above this zone, the uptrend above $50,000 will become apparent.
BTC/USD 4-hour chart
The IOMAP model by IntoTheBlock reveals that all Bitcoin addresses are in profit. The metric also shows that Bitcoin does not have a defined resistance ahead. Therefore, sustained action above $50,000 will ensure that Bitcoin stays in the price discovery mode.
On the flipside, immense support is highlighted between $47,112 and $47,740. Here, nearly 905,000 addresses had previously bought roughly 471,000 BTC. Slicing through this area will not be easy, which confirms the least resistance path is upwards.
Bitcoin IOMAP chart
Looking at the other side of the fence
Bitcoin will abandon the breakout above $50,000 if the bulls lose steam before higher support is established. Moreover, the ascending channel middle support must remain intact to avert losses back to $46,000. The 50 Simple Moving Average on the 4-hour chart is in line to offer support if a breakdown ensues.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.