Bitcoin price aims for $48,000 as a new level of support is being established
- Bitcoin price broke the 50-day moving average this weekend
- BTC is consolidating at $41,000 under low volume
- A break below $39,100 will invalidate the bullish thesis
Bitcoin price is currently trading at $41,000. Following this weekend's breakout, the peer-to-peer digital asset appears to be consolidating before the next rally commences.
Bitcoin price showing proof of more upside potential
Bitcoin price shows signs of a large wave four on the macro chart. It was written earlier this month that the D wave of the potential triangle formation is being established. It looks now that Bitcoin price maybe halfway there as the first swing upwards occurred this weekend into the $41,000 zone.
Consolidation and further selling are standard within D wave triangles, so traders should not expect to see clean impulsive price action. It is worth noting that the low volume during the current consolidation is considered a bullish indicator amongst traders.
Bitcoin price breaking the 50-day moving average this weekend is also very bullish in its own right. Today, BTC tests the broken moving average as a new support level. Traders will likely rush to buy a breakout and aim for the 200-day moving average at $48,000.
BTC/USDT 8-Hr Chart
Bitcoin price must successfully establish the 50-day moving average as support for this bullish idea to work. Under no circumstance should BTC price action below $39,100.
If this were to happen, Bitcoin price could continue to fall up to 12% into lower levels of support at $38,000 and $36,000.
Author
FXStreet Team
FXStreet
