This week, Bitcoin reached the $47,000 mark. This is a welcome development after a period of low momentum for the digital asset. Officially, it signaled an end to the consolidation that had been going on for the last two-and-a half months. The real work starts now as bears are mounting substantial resistance in order to prevent the cryptocurrency’s breaking through $50,000.
This is the Point to Beat
Bitcoin still holds above $47,000. However, it is facing opposition from many in the region. The technical level of $47,500 has been a constant in various rallies throughout history. Bears have been camping at this level for the past few rallies, which makes it an important resistance point. A failure to achieve the $50,000 goal would mean that it will never be realized.
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The digital asset will win if it can beat the point and gain support, which will make the competition for $50,000 very competitive. Pushing past $50,000 will set BTC on a new path to $53,000. This time around, solidifying BTC’s campaign towards a new all-time high.
Now $47.500 is the price to beat. Source: Arcane Research| Source: Arcane Research
Bitcoin, however, has not been able to make it through. Its one attempt at breaking though has been met by resistance which has seen Bitcoin beaten back to the $47,000 range. BTC has remained strong to this point.
Bitcoin is holding steady
Although bitcoin suffered a setback after it tested the $47.500 resistance level, it quickly recovered its feet. It is important to remember where bitcoin appears to have found support.
BTC fails to surpass $47,500 resistance | Source: BTCUSD on TradingView.com
Arcane Research says that BTC seems to have changed $45,000 from resistance, which was in the beginning of the rally into a support level. The digital asset could fall to $47,000 below this level, however it is likely that the $45K support will be significant. BTC will fall to $47,000, but it will be quickly reverted to low $42,000s. This is because the BTC price is closer to a sliding-scale.
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Bitcoin trading comfortably above the 200-day and the 50-day moving Averages. This confirms both a bullish and short-term outlook. At the time this is written, it remains steady at $47,000.
Featured image by Coingape. Charts from Arcane Research and TradingView.com.