The Bitcoin market experienced a positive August after rocky preceding months, closing above the $47,000 level. In 48 hours the top 10 most valuable cryptocurrencies all witnessed increases of at least 5%, indicating that they all benefited from the market upswing. Although BTC is still at a considerable distance from its April high at $64,899, the major digital asset is showing signs of strength. After the recent brief pullback, buyers have returned for the 3rd time as bulls break the key $50,000 handle again. Since the price of Bitcoin is influenced by previous data, the recent upsurge could yield further upside towards $55,000. El Salvador’s ‘Bitcoin Law’ is poised to take force on Sept. 7, cheering the bulls ahead as Bitcoin becomes the nation’s legal tender. Another potentially optimistic move is the country’s Legislative Assembly’s recent approval of a $150 million Bitcoin Trust Fund. The funds will be used to help fund the construction of government-backed crypto ATMs as well as provide incentives to encourage people to use Chivo, the government-backed digital wallet.
Key Levels
Resistance Levels: $57,000, $55,000, $53,000
Support Levels: $48,000, $45,000, $43,000
BTC/USD Daily ChartBTC/USD is posting about 5% gains on Thursday but remains under pressure after passing through the $50,000 psychological area for the third time. It rose just ahead of this level to reach a $50,392 intraday high but it stays vulnerable to a move below it, which may push it into a corrective zone or breakout. And in terms of medium- to long-term forecasts, the price remains positive overall towards $55,000.
That isn’t to say we won’t see a price drop as we’ve seen in the past. Rather, a fix may be in the works. BTC/USD has established stable support around horizontal levels between the $46,000-$47,000 region which now correlates with the moving average (MA 200). Overall, Bitcoin has the potential to surge, and while everything currently appears to be leading to recovery, nothing would amaze more than a swift price spike.
BTC/USD 4-Hour ChartDespite a successful break at the resistance level of $50,000 and a brief consolidation around the level, the bulls are expected to gain pace and approach the next resistance level of $51,000. The BTC/USD pair remains in a positive trend from a technical standpoint. In support is the price trading above the moving average (MA 50) and has tried but failed to break through the priority change level above $50,000.
On the four-hour chart, the relative strength index (RSI) is lowered from the overbought condition, which usually accompanies small pullbacks when buyers failed to sustain the price above a barrier. At this point, strong factors will be required to push Bitcoin prices higher than the intraday high at $50,392. However, due to few drivers, a larger breakout is yet to occur. Despite this fact, BTC has positive news.
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