Bitcoin Is Moving Towards $50,000

·2 min read

Bitcoin Stays Strong

Bitcoin managed to get above the resistance at $48,000 and continues to move towards the psychologically important $50,000 level. Meanwhile, Ethereum climbed above the resistance at $3,600 and is trying to gain additional upside momentum.

Smaller cryptocurrencies like Dogecoin or XRP failed to develop material momentum, and it looks that traders interest is concentrated in Bitcoin and Ethereum today.

Bitcoin Dominance, which measures the market capitalization of Bitcoin as a percentage of total crypto market capitalization, is stuck near 41%. Bitcoin’s recent rebound failed to provide significant support to Bitcoin Dominance which indicates that traders’ interest in altcoins remains strong.

Technical Analysis

Bitcoin continues to move higher and is trying to settle above the resistance level at $48,000. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

A successful test of the resistance at $48,000 will open the way to the test of the next resistance level at $50,000. In case Bitcoin gets above the key resistance at $50,000, it will attract more speculative traders and head towards the next resistance level which is located at $51,500.

A move above the resistance at $51,500 will open the way to the test of the resistance at $53,000. If Bitcoin manages to settle above the resistance at $53,000, it will move towards the next resistance level at $55,000.

On the support side, Bitcoin needs to get back below $48,000 to have a chance to develop downside momentum in the near term. The next support level for Bitcoin is located at the 20 EMA at $47,300.

If Bitcoin declines below the 20 EMA, it will head towards the support at $46,000. A successful test of this support level will lead to a test of the support at the 50 EMA at $45,500. If Bitcoin declines below the 50 EMA, it will continue its downside move and head towards the support level at $44,000.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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