Wednesday , April 21 2021
Home / Bitcoin (BTC) / Bitcoin Price Analysis: BTC Skyrockets Over $5K Today – Temp Correction Or $50K Inbound?

Bitcoin Price Analysis: BTC Skyrockets Over $5K Today – Temp Correction Or $50K Inbound?

Summary:
Bitcoin saw a strong rebound today as it recovered from yesterday’s low at ,000 to over K, where it is trading as of writing these lines.The cryptocurrency had been in a downtrend for the previous week as it dropped by over 25% to reach its weekly low yesterday, at the mentioned-above level of K (according to Bitstamp).During the correction, Bitcoin had broken beneath an ascending price channel that it was trading within throughout February. However, over the past days, BTC was forming a falling wedge which is a textbook bullish formation. The wedge can be seen on the following 4-hour chart.Alongside the pennant, there were hints of bullish divergence on the short-term timeframes, including the 4-hour, that we highlighted yesterday. After closing the daily candles for the previous

Topics:
Yaz Sheikh considers the following as important: , , , , ,

This could be interesting, too:

Mandy Williams writes Biden Administration Reportedly in Early Stages of Readying Regulation for Bitcoin

Jose Oramas writes Rothschild Investment Buys .75M in Shares of the Grayscale Ethereum Trust

Jordan Lyanchev writes Hackers Sell Off Personal Information for 10 Bitcoins After Hacking Domino’s India

Jordan Lyanchev writes TIME Magazine to Receive Cryptocurrency Payments for Digital Subscriptions

Bitcoin saw a strong rebound today as it recovered from yesterday’s low at $43,000 to over $48K, where it is trading as of writing these lines.

The cryptocurrency had been in a downtrend for the previous week as it dropped by over 25% to reach its weekly low yesterday, at the mentioned-above level of $43K (according to Bitstamp).

During the correction, Bitcoin had broken beneath an ascending price channel that it was trading within throughout February. However, over the past days, BTC was forming a falling wedge which is a textbook bullish formation. The wedge can be seen on the following 4-hour chart.

Alongside the pennant, there were hints of bullish divergence on the short-term timeframes, including the 4-hour, that we highlighted yesterday. After closing the daily candles for the previous two days at $44,750, the bullish divergence played out nicely today – allowing Bitcoin to break the wedge’s upper boundary, penetrate beyond the 4-Hour 20-EMA, and sharply climb above the $48,000 mark.

Now, the question is, whether Bitcoin will have enough power to penetrate the $50K psychological resistance level, and maybe aim at the current all-time high level of $58K, set just days ago on February 21, 2021.

BTC Price Support and Resistance Levels to Watch

Key Support Levels: $47,200, $46,600, $44,750, $43,745, $42,760, $42,000.

Key Resistance Levels: $50,000, $52,500, $55,000, $56,112, $57,960.

Moving forward, the first level of resistance lies at the benchmark level of $50,000. This is followed by $52,500 – the target of the wedge’s breakout, $55,000, $56,112 (1.414 Fib Extension – purple), and $57,690 (1.272 Fib extension – blue).

On the other side, the first support is now found at $47,200 (.382 Fib). This is followed by $46,600 (4-hour’s EMA-20), $44,750, $43,745 (.5 Fib), $42,760 (downside 1.414 Fib Extension), and $42,000 (previous ATH).

The daily RSI has now returned to the midline, indicating the previous bearish momentum has dissipated. The RSI is now above the midline on the short-term charts, indicating short-term bullish momentum is now present.

Bitstamp BTC/USD Daily Chart

btcusd-mar1
BTC/USD Daily Chart. Source: TradingView

Bitstamp BTC/USD 4-Hour Chart

btcusd-4hr-mar1
BTC/USD 4-Hour Chart. Source: TradingView

Leave a Reply

Your email address will not be published. Required fields are marked *