Bitcoin price yearning for a firm break above $50,000 amid looming options expiry
- Bitcoin price consolidates before the next push higher above $50,000.
- BTC price wavers in a rising wedge, downside capped by key $47,300 level.
- Large BTC options expiry looms amid bullish RSI, investors remain cautious.
Bitcoin has witnessed good two-way price movements so far this Sunday, keeping its bearish momentum intact while below the $50,000 psychological barrier.
However, the pioneer cryptocurrency continues to find strong bids near the $47,000 level. Over the past trading week, Bitcoin price largely consolidated below the $50,000 mark, as buyers pause before resuming the next upswing.
Despite, the underlying upbeat outlook, investors remain wary ahead of the month’s end expiry of $1.8 billion BTC options, justifying the pullback in Bitcoin price.
“$1.68 million worth of Bitcoin flows into exchanges, the most significant inflow since June 2019. Analysts admit to taking profits in Bitcoin and Ethereum on crypto Twitter; traders have a cautious outlook on the assets,” Ekta Mourya, FXStreet’s Editor explained.
Bitcoin price: Path of least resistance appears to the upside
Looking at the daily chart, the BTC price is holding onto powerful support at $47,300, the intersection of rising wedge support and upward-sloping 21-Daily Moving Average (DMA).
BTC bulls remain hopeful so long as the above-mentioned crucial support is defended. Sellers will target the horizontal 200-DMA at $46,089 on a daily candlestick closing below the latter.
The downside pressure will intensify on a sustained break below the 200-DMA support, opening floors for a massive sell-off towards the bullish 50-DMA at $41,008.
BTC/USD: Daily chart
However, with the 14-day Relative Strength Index (RSI) still sitting comfortably above the midline, markets view the pullback as a good ‘dip-buying opportunity for BTC optimists.
BTC price needs to find a strong foothold above the $50,000 threshold to revive the uptrend. The next relevant upside target is envisioned at the rising trendline (wedge) resistance at $52,279.
From a near-term technical perspective, Bitcoin’s path of least resistance appears to the upside amid a bunch of healthy support levels.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
