There’s a reason for Bitcoin to take the lead and be seen as a powerful indicator of sentiment across the cryptocurrency space. After free fall selling pressure collapsed in September 2021 and posted a 25% loss within three weeks, this was considered BTC would go down and repeat the fall in May 2021.
As the story tells the events, Bitcoin has always taken a sharp U-turn from the points of no return. However, BTC jumped from the clutches of an even deeper sales sentiment that was built this time around. The move from $ 40,500 to $ 51,500 in just over a week has created strong buying sentiment. At this point in time, BTC is valued at around $ 967 billion, just a bit away from becoming a trillionaire for the second time since May 2021.
Despite the negativity about the real value and practical uses of Bitcoin, it miraculously stood the test of time in 2021. Concerns about China’s crypto regulation and increasing power consumption are more than just small countries, BTC has undoubtedly initiated a very strong pullback. $ 55,000 will be the first number to consider BTC as a bullish crypto asset.
Bitcoin price analysis
BTC has returned with a bang of over 25% in less than a week. However, there are several important support, resistance, and technical levels to consider in predicting possible price action in the near future.
Bitcoin price took support at $ 40,500 and consolidated for a few days as buying sentiment was retested at $ 40,500 before heading towards the resistance level at $ 44,500. With a one-day boost of 9.86% from the closing value, BTC became a strong cryptocurrency by closing above its immediate resistance level and the important 200-day moving average.
The MACD indicator had already shown a golden crossover on a positive movement on the first day in October 2021. On the flip side, the RSI has already made a massive leap from a neutral stance of 40 to an extremely positive level of 65. BTC is about to give a clear indication of an overbought zone if buying sentiment continues to move higher, as it did throughout October.
Exceeding $ 50,000 was another success for BTC as the last level of resistance on the daily charts was decimated for the time being. Maintaining this level will be critical to turning this move into a more significant rally targeting $ 60,000. However, BTC is known for pulling back to previous intense support levels that caused a trend reversal. With this price promotion you should according to the BTC price forecast.
Bitcoin marked a crucial price action, but a look at the hourly charts provides better clarity on the trend and sentiment. $ 47,000 to $ 48,000 has become a consolidating measure for buying levels while $ 51,500 to $ 52,000 has become a resistance level for now. In addition, the RSI and other indicators were critically important. Because of this mix of indications, one should wait for $ 52,000 to break the daily charts before making any new entries.