Bitcoin broke $43,000 during a stunning recovery process that started at the beginning of this week. The market has seen a marked improvement in momentum this week. The digital asset is performing well, but there are many things that could cause it to fall. One is its ability to keep bouncing past important resistance points.
These are the points to remember
Bitcoin is still the best-known crypto asset. Its outperformance throughout its history is what has made it so valuable. This has been achieved despite some obstacles. Some of these are significant resistance points the asset needs to comfortably overcome in order for a bull market to begin. Bitcoin is not the only one that needs to be taken into consideration.
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The cryptocurrency will soon reach $43,000. Bears will then wait to see if it reaches near $45,000 before they can mount substantial resistance. This is a crucial point to win as it sets the direction for another bull market. As bears continue to control Bitcoin, Bitcoin is unable beat this level in 2018. But, there could be an opportunity to overcome this level if the buying momentum shifts significantly.
Source: BTUCSD on TradingView.com| Source: BTUCSD on TradingView.com
The digital asset’s position has been stable above the 50-day moving median. It is only natural that there will be more buying pressure. If this happens, the digital asset can then take another step towards the $45,000 resistance. It remains the target.
Bitcoin’s Range Hits New Record Highs
Bitcoin has been in a consolidation mode for most of 2022. The trend is still raging, but bitcoin has been able to recover from the two-and-a half-month-long consolidation. Although this could be a sign of a breaking out from the current consolidation range due to recent upside, it is still not clear.
Source: Arcane Research| Source: Arcane Research
The fourth attempt by the digital asset to breach the $45,000 level will fail. If it fails, the movement that results in bitcoin moving back towards the $42,000 support area will be swift. This will be the level to hold for the bulls, otherwise, the digital asset could very well see itself fall back into the high $38K’s. This point has only one positive: the support at $36-$38k is tremendous.
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The cryptocurrency has a consistent trend of lower lows, despite dips. This means that momentum has now gone in favor of the bulls for the time being, although the bulls’ hold on the current momentum is still weak.
Featured image taken from Euronews. Arcane Research charts and TradingView.com chart.