Bitcoin doesn’t buckle after US$50,000 and sets itself apart from altcoins
The Bitcoin price continues to know only one direction and can clearly overcome the psychological resistance level of 50,000 US dollars for the time being. Its dominance can also increase by almost 2 percent after several weak weeks.
Bitcoin (BTC): BTC price overcomes USD 50,000 and should march through towards 53,840
Bitcoin rises to ever new highs driven by ever new investments from institutional investors. The dynamic breakout above USD 50,000 boosted the Bitcoin Revolution price to a new all-time high of USD 51,667, which led to a new high in investments on the CME futures exchange in Chicago. Currently, the key currency is attacking the resistance area between USD 51,667 and 53,840. Stabilisation above USD 50,000 should pave the way for further rising BTC prices in the coming weeks.
Bullish scenario (bitcoin price)
The bitcoin price can continue to maintain its bullish stance and is currently attacking the important resistance area, in the form of the 138 Fibonacci extension. If the bulls manage to break through this resistance level, the price level at USD 53,840 will first come into view. If there is no significant setback in the orange resistance zone, a march through to USD 57,667 is likely. This is the 161 Fibonacci extension. Investors are likely to take their first profits at this chart level. Statistics show that the 161 Fibonacci extension is a resistance level that should not be underestimated. Setbacks in the form of a consistency test of the USD 50,000 area are not only likely, but even beneficial for the medium-term price trend. If Bitcoin can subsequently break through the resistance at USD 57,667 on the daily closing price, a march through to USD 61,694 is conceivable in the coming trading weeks.
If this resistance is also sustainably overcome, the 200 Fibonacci extension at USD 67,463 will come into focus for investors. Here, investors are likely to reap profits once again. As long as the BTC price does not consolidate significantly below USD 57,000, an attack in the direction of USD 70,000 should be planned for the medium term. There are currently larger sell positions here that cannot simply be jumped over. If the bulls manage to gradually soften this area in the coming months, a rise towards 77,678 USD is conceivable.
While the analyses at the beginning of the year were still talking about a maximum rise to this chart level, the increasingly bullish news situation around Bitcoin could even ensure a rise towards USD 83,310 in the second half of the year. This is where the 261 Fibonacci extension of the overarching price movement is found. Based on the current interest in the crypto sector, a price rise to USD 89,982 is also conceivable as a protection against inflation. This is the 461 Fibonacci extension from the hourly chart. If the positive development of the last few weeks continues throughout 2021, reaching the 361 Fibonacci extension at USD 108,953 cannot be completely ruled out as a maximum bullish price target.
Bearish scenario (Bitcoin price)
If, for example, there is another significant correction on the entire financial market, the Bitcoin price will not be spared. If the Bitcoin price falls back below USD 50,000 in the traditionally weak month of March and the first support levels at USD 48,795 and USD 48,222 are undercut by the daily closing price, the support level at USD 47,070 will initially come into view again. If this support does not hold, the consolidation will initially extend to the weekly low at USD 45,710. If the bears manage to undercut this price level as well, a relapse to USD 43,703 is likely. This is the EMA20 (red) and the low of the last seven trading days. Already from this level, the bulls will try to attack the USD 50,000 level again. If, on the other hand, the price of the key currency also breaks through this price level dynamically downwards, the support area in the form of the old all-time high between USD 41,970 and USD 40,407 will come into the focus of investors. This is currently the super trend in the daily chart. If, contrary to expectations, this strong support zone is undercut as a result of an overall market correction, a short setback to 39,130 USD is likely.