After being rejected at the 200-day moving average line in the $48K range, Bitcoin’s price surge stalled.
Since the MA200 rejection, the price has fallen lower and is currently retesting the 50-day and 100-day moving average lines. These MAs have also recently printed a bullish cross, with the 50-day MA crossing above the 100-day MA.
The $42K level, which is also a strong horizontal support level, is currently holding the price. After a bullish breakout a few weeks ago, this level was resistance that converted into support.
If this region fails to support the price, a retest of the $36K zone is a distinct possibility.
If the price bounces off this support level, the $48K zone and the 200-day moving average will almost certainly be retested.
How long will BTC take to skyrocket
Since its swing high of $48,238 on March 28, bitcoin’s price has dropped about 12%. BTC is currently trapped between the $42,076 support level and the $40,490 to $42,316 demand zone.
An upswing is a high probability outcome due to the 50-day and 100-day Simple Moving Averages (SMAs) within this confluence.
The following rise is expected to boost Bitcoin price to $44,580; clearing this hurdle fast would allow bulls to put their strength to the test by breaking above the 200-day SMA at $48,248.
There’s a good probability Bitcoin price may target a retest of the $50,000 psychological level if purchasing demand is strong enough to overcome this important barrier.
By hitting the $52,000 threshold, such a development will also open up the possibility of greater profits.
This run-up to the level described above would be a 21% increase, and it is likely where the giant crypto’s upside is restricted.
While the fundamentals of the Bitcoin price point to a bright future, the technicals don’t agree.
As a result, if the daily candlestick closes below $40,490, the bullish thesis for Bitcoin will be invalidated, opening the way for a further decline to $34,752.