Bitcoin Crosses Above $44K – Double Top to Extend Resistance
Skerdian Meta • 2 min read
Bitcoin has once again broken through the $44,000 barrier. After a few weeks of low momentum, BTC/USD has been able to begin another recovery trend, adding over $4,000 to its price in the previous day. Its landing point has been above $43,000, where it has found support, putting it above the 50-day simple moving average. What does this have to do with Bitcoin’s price?
Bitcoin is currently trading higher than its 50-day simple moving average. This is an important point for the digital asset because it represents the price buyers are willing to pay for it in the short to medium term. When Bitcoin falls below this level, it indicates a lack of enthusiasm among buyers and an unwillingness to pay the price paid in the previous few weeks.
In addition, the digital asset is now trading above the 5 and 20-day simple moving averages. In the short term, this is extremely bullish. Pressures are now heavily skewed toward buying, driving up the value of the digital asset in the process. Furthermore, BTC investors are increasingly choosing to hold rather than sell for profit, with miners leading the charge in this regard.
However, the fact that BTC is now trading above this level indicates that investors are looking to re-enter the market. It takes the power away from the sellers and turns the market into a buyer’s market. As demand grows, more supply is removed from the market, and the value of the digital asset rises.
This could also indicate that Bitcoin has already reached a local low of $38,000. With this bottom confirmed, it demonstrates a local support level for BTC where bulls have put up significant resistance.
Despite the recent uptrend, Bitcoin is not yet out of the woods. On Tuesday, it broke through the first resistance point of $43,349, but the next resistance point remains a challenge. Bears will undoubtedly mount resistance at the $45,044 level, making this an important milestone for cryptocurrency. If bitcoin can break through this, the next resistance is just above $48,000, after which there is nothing stopping the asset from breaking through above $50,000.
Daily Technical Levels
Pivot Point: 41634
BTC/USD Technical Outlook
Bitcoin paved the way for a significant rise above the $44,000 resistance level and the 100 hourly simple moving average, breaking through the $43,000 barrier and going as high as $44,192. It is currently consolidating and trading below a double top resistance level of 45,000.
On the upside, an immediate resistance level is approaching $45,000. The first significant resistance is located near $44,200. If bitcoin fails to break over the $44,200 barrier level, it may trend downward. On the downside, there is immediate support near $43,000.
The next significant support is predicted at about $42,500. If the price breaks below the $42,500 support, it may gather bearish momentum towards $40,500. It is close to the 50% Fib retracement level of the upward advance from the swing low of $37,029 to the high of $44,192. Good luck!