Bitcoin Repaints $50K – Why 61.8% Fibonacci is a Key for Uptrend Continuation

Following a significant drop below $45,000, the Bitcoin price has begun a decent comeback wave. The recent rebound began with BTC rising back over the resistance levels at $46,500 and $48,000.

The price has now returned to above the $49,200 resistance mark, after a break over the crucial 50 percent Fib retracement level slide, from the swing high of $57,690 to the low of $40,150. Furthermore, the bulls were able to drive the price above the critical $50,000 barrier.

A short-term bullish trend line is forming on the hourly timeframe of the BTC/USD pair, with support near the $49,600 level. The pair is currently trading close to $51,000 and the 100-hourly simple moving average.

On the higher side, there is an immediate barrier near the $51,000 level and the 100 hourly SMA, close to the 61.8 percent Fib retracement level of the crucial slide from the swing high of $57,690 to the low of $40,150. A decisive break above the $51,000 resistance level could enable more gains.

The next major obstacle is near $52,500, above which the price could move higher. In the scenario above, the price could jump to $53,500.

If Bitcoin fails to break through the $51,000 barrier mark, it may trigger a new bearish bias. Towards the lower side, there is immediate support near the $50,200 level.

The first ample support is currently emerging near the $49,600 mark and the trend line. A breach below the $49,600 support level might signal the start of a new slump. The next target for the bears could be $46,000.