The Bitcoin price is back on the charge higher this morning, gaining more than 5% and once again staring down the key $50k level. But this time, BTC should have enough gas in the tank to punch through to $52,000, and maybe higher still.
Bitcoin (BTC/USD) has spent the best part of a week struggling for a bid, trading from $48,750 down to a low of $44,500 yesterday. However, this morning, the Bitcoin price has found a bid at trend line support, which should set the price up nicely for an extension higher. Encouragingly, it’s not just the market leader that is stronger this morning. The breadth is a positive sign, and almost all of the top-50 cryptos are higher, except Solana and Terra, which have taken breather from their recent parabolic rallies. This has lifted the value of the Cryptocurrency market back above $2 Trillion, although BTC’s dominance is slipping and currently accounts for 43% of the total market.
BTC/USD Price Forecast
The 4-hour chart shows the Bitcoin price has been trending higher in a parallel channel for the last month, gaining 60% in the process. Furthermore, yesterday, BTC spent more than 12 hours testing the lower end of the channel at $44,500 before turning higher. As a result, Bitcoin has also broken out of a week-old bull flag, which twinned with the successful test of support, is extremely constructive for the price. Furthermore, the Moving Average Convergence Divergence (MACD) Indicator, flashing a buy signal and the Relative Strength Index, has broken out to the upside, suggesting increasing bullish momentum.
The confluent supporting factors are incredibly positive, which should lead to BTC forging higher to test the trend line resistance that forms the top of the pattern around $51,900.
The positive view is dependent on the trend channel remaining intact. And should BTC lose the support of the trend, which I now at $45,050, the bullish call becomes invalid.
Bitcoin Price Chart (4-Hour)
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