- Bitcoin price has slipped below the $44,671 support level and is currently grappling with the $42,076 barrier.
- A bounce off this foothold will likely trigger an ascent to $52,000.
- A daily candlestick close below $40,490 will invalidate the bullish thesis for BTC.
Bitcoin price has been trading devoid of its volatility for the past three days. This development occurs above a crucial support level, which indicates that a breakout will lead to a bullish move.
Bitcoin price contemplates directional bias favoring bulls
Bitcoin price crashed nearly 12% since its March 28 swing high at $48,238.Currently, BTC is grappling with a confluence of the $42,076 support level and the $40,490 to $42,316 demand zone.
Due to the 50-day and 100-day Simple Moving Averages (SMAs) inside this confluence, an upswing is a high probability outcome. The resulting rally is likely to propel Bitcoin price to $44,580; quickly cleaning this hurdle will open the bulls' path to test their strength by overcoming the 200-day SMA at $48,248.
If the buying pressure is strong enough to overcome this significant barrier, there is a good chance Bitcoin price will eye a retest of the $50,000 psychological level. Such a development will also open up the avenue for further gains by tagging the $52,000 ceiling.
This run-up to the level mentioned above would constitute a 21% upswing and is likely where the upside for the big crypto is capped at.
BTC/USDT 1-day chart
While the fundamentals for Bitcoin price show a highly optimistic outlook, the technicals are not following it. So, a daily candlestick close below $40,490 will invalidate the bullish thesis for Bitcoin price and open the path for further descent to $34,752.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.