December 6, 2022

Bitcoin Price Analysis: BTC Now Retests Critical Support Line, Will The Uptrend Continue?

2 min read

Yesterday, bitcoin surged by an excellent 9% from daily low to daily high, exceeding the $58k mark. This continues the ongoing bullish week for BTC. Just 6 days earlier, on Sunday, bitcoin rate plunged to as low as $47k.

Yesterday’s spike enabled bitcoin to climb back above the considerable 50-day moving average line, after investing 11 days beneath it. Before this, bitcoin hadn’t seen a daily close underneath the 50-days MA given that October 2020.

As a quick wrap-up, BTC broke listed below the 50-days MA on April 19th and continued to head lower from there till it discovered assistance at $47,000 (.5 Fib) last Sunday, as discussed above.

Earlier today, the bulls came across a substantial resistance location at $58,355, which was the previous all-time high set at mid-February. This resistance was more reinforced by the upper angle of a short-term ascending price channel.

After reaching this resistance, bitcoin backtracked over $1000 to where it is trading right now. According to Bitstamp, the everyday MA-50 now lies at around $56,930. This, together with the $57k horizontal support, is the very first major assistance bulls should take a look at.

BTC Price Support and Resistance Levels to Watch

Key Support Levels: $56,950/ $57k (MA-50), $56,400 (MA-20), $55,400, $54,050, $52,700.

Key Resistance Levels: $58,355, $59,000, $60,000, $61,780, $62,940.

Looking ahead, the first resistance lies at $58,355 (Feb highs or today’s highest). This is followed by $59,000 (upper angle of ascending cost channel), $60,000, $61,780 (March previous all-time high), and $62,940 (bearish.886 Fib).

On the other side, the very first support lies at $57k – – $56,950 (50-days MA). This is followed by $56,400 (MA-20), $55,400, $54,000 (.382 Fi), and $52,700 (.5 Fib & & lower angle of the rate channel).

The RSI handled to break the midline and climb above 60, showing that the bulls have actually taken control of the short-term momentum and are increasing their hold. This is a positive indication for the bulls, signals that the uptrend is healthy. This comes along with Bitcoin whales supposedly accumulating Bitcoin listed below $50k earlier this week.

Bitstamp BTC/USD Daily Chart

BTC/USD Daily Chart. Source: TradingView Bitstamp BTC/USD 4-Hour Chart BTC/USD 4-Hour Chart. Source: TradingView