Bitcoin rose above $48,000 today, erasing its double-digit losses since the beginning of the year. The recent rally in BTC has been rather off the radar so far and could gain additional tailwinds once positive developments start taking up more space in the media again. Ongoing inflation is supporting Bitcoin (BTC) and other altcoins as prices continue to surge higher by hitting buy orders above $45,000 and forcing sellers to close SHORT positions in deep losses. BTC has now recovered from year-to-date losses seen after starting Jan. 1 at $46,730 and reaching lows of $32,933. At the time of analysis, BTC/USD is trading above $47,500 after reaching an intraday high of $48,240 gaining nearly 5% over the past day and 17% over the week. The demand for Bitcoin increased as investors’ risk appetite improved in anticipation of a bull rally. Per Gassnode data, Long-term holders are still hoarding Bitcoin, and the number of Bitcoins on exchanges is decreasing. This data is interpreted by the company’s experts as the end of the downward correction period.
Key Levels
Resistance Levels: $55,000, $53,000, $50,000
Support Levels: $45,000, $43,000, $40,000
BTC/USD Daily ChartThe bulls continue to have the upper hand on the daily chart, as BTC managed to convert resistance levels into support throughout this current advance. The bullish picture is bolstered by a rising strong relative strength index (RSI). Bulls will now try to break through the moving average (MA 200) barrier above $48,000. If successful, the BTC/USD pair might rise to $50.
On the downside, bears of BTC might find it difficult to drive the price lower due to a substantial layer of support below $45,000. If the bears manage to push the lead crypto below this important support level of $45,000, it will indicate that the momentum has slowed. Further lower, a break below the moving average (MA 50) at $41,500 could indicate that the bottom is not formed.
BTC/USD 4-Hour ChartBTC/USD bullish momentum took a respite on its approach to $48,500, as seen on the 4-hour chart. Following a minor retracement, BTC might attempt the $47,000 support level. The bulls might not give up any ground, next is the $45,000 which might absorb any bearish pressure and stop Bitcoin from sliding to former low levels. If this support gives way, the sellers will run against another major support on their path to $40,000.
A breakout above $50,000 holds the key to a BTC rise above $70,000 on the upside. Although the BTC/USD pair is only bullish when trading above the $50,000 mark and the 4 hour MA 200, the primary barrier is found at $48,500 and $50,000. If the BTC/USD pair returns to trade below $45,000, the $43,000 and 4 hour MA 50 should be considered.
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