- Bitcoin price pierced the $50,000 psychological level after roughly 100 days.
- This upswing comes after a prolonged consolidation above the $46,000 support barrier.
- A decisive close above $50,958 will confirm the start of an uptrend to $56,670.
Bitcoin price is grappling with a pivotal psychological level for the first time since May 14. A continuation of this bullish momentum could be the key to pushing BTC to a crucial resistance level and even retest the all-time high.
Bitcoin price exudes bullishness
Bitcoin price breached through a supply zone, ranging from $43,150 to $45,791 on August 13 and consolidated above it for roughly four days. However, over the past 24 hours, BTC dipped into this barrier, indicating momentary weakness but bounced back quickly.
Since the swing low at $43,833, BTC has rallied 15%, piercing the $50,000 psychological level.
While this move is a crucial bullish development, Bitcoin price needs to produce a decisive daily candlestick close above $50,958 to confirm the start of a new uptrend.
Such a move will open the path up to $55,210 and $56,670. A rally that flips these resistance levels into support will indicate the buyers’ intent and push Bitcoin price to retest the all-time high at $64,854.
BTC/USDT 1-day chart
While the recent upswing is bullish, a failure to produce a bullish close above $50,958 will lead to consolidation above $49,024 or a slow downtrend. Investors need to note that an upswing is possible during the said sideways movement mentioned above.
However, if Bitcoin price produces a lower low below $43,927, it will invalidate the bullish thesis and trigger a massive downswing to $42,451.
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