BTC price is up 25% over the past month. 20MA has acted as support since the bottom in July.
BTC Price has formed a curve which shows breakout in 1 week or less.
Bitcoin (BTC) price has been having trouble tackling the $50,000 mark over the last 2 weeks. After prices surged off the bottom of $29,000, BTC managed to rise nearly 75% in less than a month. Since then, BTC price has been steady within a $5,000 range which has allowed many alt coins to surge past their ATHs. The overall market is still showing bullish signs as many investors are anticipating a push over $50,000 to happen fairly soon.
On the daily timeframe, BTC price looks overextended but this does not negate the possibility of a surge to $55,000 before a larger pullback occurs.
As BTC price has risen over the last month, each top it has put in has became less parabolic. This BTC price action has formed a curved top along with a curved bottom over the past 35 days (shown in black). The end of this formation is within a week & BTC is expected to have a large breakout sometime before then. It is hard to say whether this is a bullish or bearish pattern but we can use each curve as a reference.
BTC price must break & hold the major resistance zone found at $48,000-$50,200 to experience a large push to the upside. In the case bulls manage to pull this off, expect BTC to reach $53,300 & potentially $56,530.
Throughout this bullish trend, BTC price has been held up by the 20 day MA. This MA has kept Bitcoin from starting a downtrend as bulls have fiercely bought each time price has reached it. We can use this MA as a good reference to whether BTC remains bullish or is entering a bearish state.
If bulls fail to break the major resistance zone & break below the curved formation, we should expect BTC to break below this MA. If this occurs, BTC price will then be in a confirmed bear trend & we should expect prices to land between $42,000-$44,700.
While looking at the Stochastic RSI, we can see how strength has continued to print lower highs despite price printing higher highs. This is considered a bearish divergence & would land BTC price back below $45,000 if it plays out. Strength must break over the trend line to negate this possibility.
Looking at the RSI, we can see a channel formation has kept strength going sideways the past few weeks. Strength must break the top trend of this channel for BTC price to have a shot at reaching mid $50,000s.
Spot rate: $48635
Trend: Neutral
Volatility: High
Support: $46600
Resistance: $5020
