December 6, 2022

Bitcoin Price Analysis: BTC Needs To Close Above This Level To Continue The Weekend Momentum

2 min read

Bitcoin price is up by another 6% today, as the cryptocurrency lastly recovers $50,000. Earlier today the cryptocurrency reached over $51,300 (Bitstamp), however rapidly retraced from there down to the $50K area. Up until now, this reflects a 2-day cost gain of over $4000 considering that Friday’s low of $46,400.

Quick wrap-up: Bitcoin cost began to scale at the start of March but could not overcome the resistance around $52,500 at the Golden Ratio (bearish.618 Fib) earlier today. From there, it began to lose momentum till assistance was fulfilled at $47,200 (.382 Fib) on Friday.

Not a coincidence, there seems to be increased demand from organizations below $50,000. Information shows enormous outflows from Coinbase when the rate action was around $47K – – $48K, indicating that institutions are doubling down on Bitcoin.

The Key Level

Following the bullish reversal on Wall Street’s Friday session, that included the brand-new stimulus plan approval, Bitcoin was able to recover the $50k price area, currently.

However, the primary cryptocurrency is now facing resistance at $50,655, offered by a bearish.5 Fib Retracement. It had seen no success in closing a day-to-day candle above this resistance up until now during March 2021. The break above $50,000 is important for the bulls moving on. It will be essential that today’s daily candle closes above $50,000, the least, as the previous candles all close underneath the benchmark level.

Taking a look at the following 4-hour chart, there is a potential of an inverse head and shoulders pattern forming on the short-term chart, highlighted by the blue curves with the neckline represented by the white line. For this pattern to play out, Bitcoin should rise above the neckline and clear resistance at $52,500, which is likewise the weekly high.

BTC Price Support and Resistance Levels to Watch

Secret Support Levels: $50,000, $48,000, $47,200, $46,185, $44,750.

Secret Resistance Levels: $50,655, $52,000, $52,500, $54,000, $55,000.

Looking ahead, the very first level of resistance to overcome lies at $50,655 (bearish.5 Fib). This is followed by $52,000 (H&S neck line), $52,500 (bearish.618 Fib, the weekly high), $54,000, and $55,000 (bearish.786 Fib).

On the other opposite, the first level of substantial support lies at $50,000 (day-to-day MA-20). This is followed by $48,000, $47,200 (.382 Fib), $46,185 (downside 1.272 Fib Extension), and $44,750.

The RSI has now bounced higher from the midline, suggesting that the bulls are trying to control the marketplace momentum moving forward. If it can continue to increase, BTC can be expected to continue greater beyond $50,655.

Bitstamp BTC/USD Daily Chart

BTC/USD Daily Chart. Source: TradingView Bitstamp BTC/USD 4-Hour Chart< figure id="attachment_107571"aria-describedby="caption-attachment-107571"style="width: 2908px"class="wp-caption aligncenter"> BTC/USD 4-Hour Chart. Source: TradingView