There is a reason for Bitcoin to become the leader and be considered a strong indicator of the sentiment across the entire cryptocurrency domain. After collapsing in a free fall selling pressure in September 2021, marking a 25% loss in a matter of three weeks, it was considered that BTC would be heading downwards, replicating the May 2021 fall.
As history narrates the events, Bitcoin has always taken a sharp U-Turn from the points of no return. However, BTC jumped back from the jaws of an even deeper selling sentiment being built up this time. Movement from $40,500 to $51,500 in just above a week has added a strong buying sentiment. At this point, BTC is worth around $967 billion in valuation, just a tad bit short of becoming a trillionaire for the second time after May 2021.
Despite the negativity around the real-life value and practical uses of Bitcoin, it has performed miraculously in 2021. The concerns around crypto regulations in China and increasing power consumption being more than small countries, BTC has undoubtedly initiated a very strong pullback. $55,000 will be the first number in one’s mind to consider BTC as a bullish trending crypto asset.
Bitcoin Price Analysis
BTC has returned with a bang of above 25% returns in under a week. However, there are multiple important support, resistance, and technical levels to consider for predicting the possible price action in the near term.
Bitcoin price took support at $40,500 levels and consolidated for a few days while retesting the buying sentiment at $40,500 before heading towards the $44,500 resistance level. With a single-day push of 9.86% in closing value, BTC emerged as a strong cryptocurrency by closing above its immediate resistance level and important 200 days moving average.
The MACD indicator had already indicated a golden crossover at a positive movement on the very first day of October 2021. On the other hand, RSI has already taken a massive leap from a neutral stance of 40 to an extreme positive level of 65. Thus, BTC is very close to giving a clear overbought zone indication if the buying sentiment continues to move upside as it has for the entire October.
Crossing $50,000 was another achievement for BTC as the last resistance level on daily charts has been decimated for now. Holding this level will be instrumental in turning this movement into a more significant rally targeting $60,000. However, BTC has been famous for retracing to previous intense support levels that caused a trend reversal. One should be extremely wary of this price action as per the BTC price forecast.
Bitcoin has marked a decisive price action, but looking at the hourly charts offers better clarity across the trend and sentiment. $47000 to $48000 has become a consolidative action for buying levels, while $51500 to $52000 has become a resistance level for now. In addition, RSI and other indicators have been vital. Because of this mix of indications, one should wait for $52,000 to be breached on daily charts before taking fresh entries.