Bitcoin price facing final resistance before $68K?
The price of bitcoin (BTC) has yet to reach new all-time highs above $60,000 this week. After breaking through the $58,000 barrier, negative news from India, along with general macroeconomic weakness and a resurgent US dollar, seems to have halted the rally.
This led to 16. March to a withdrawal of $53,000. This movement is normal, as a bull market usually moves in waves. In other words: The market will find a new balance between buyers and sellers and then decide which direction to take.
Overall, the market is in a significant uptrend, with the price of bitcoin rising from $11,000 to $60,000 in just six months.
Bitcoin was not more than $60,000
4 hour chart BTC/USD. Source: TradingView
The four-hour chart shows clear support at the $53,000 level. The subsequent continuation of the uptrend can be seen on bitcoin’s 4-hour chart.
This upward movement then reached the next major resistance at $58,800-60,000. This is the last major resistance level before the next wave of momentum towards $68,000 occurs.
Yesterday, however, the bitcoin price failed to break through this resistance zone, falling back into the previous range. The highest segment is between $58,800 and $60,000, and the lowest is between $54,000 and $55,000.
The pressure is likely to build and lead to an upside breakout as long as the bitcoin price stays in this range.
BTC/USD remains bullish on thedaily calendar.
1 day chart BTC/USDT. Source: TradingView
The daily chart of the BTC/USD shows a strong upward trend that has continued for the past six months. This is confirmed by higher lows and higher highs. Since the recent low was formed at $42,000, any price above that level means the bull market is not in danger.
On the other hand, the RSI indicator shows a bearish divergence, although it is invalid. The bearish divergence becomes valid as soon as the previous resistance areas become resistance again, but more importantly as soon as the bitcoin price begins to fall to lows.
Therefore, the $50,000 area is critical because it should become the new upper lowest area. But even if the $50,000 is lost, a final support anchor can be found at $42,000 and at the 21-week MA.
As long as these regions remain stable, the upward trend should continue. This should bring the price of bitcoin to $68,000, as this is the next Fibonacci level.
Total crypto market capitalization $2 trillion
Chartof the total market capitalization of cryptocurrencies during 1 day. Source: TradingView
The daily chart of the total market capitalization of cryptocurrencies has a similar structure to the bitcoin price.
In this context, $1.5 trillion in aid is essential. As long as this continues, it is very likely that we will reach the $2 trillion mark. The next Fibonacci level is between $2 and $2.1 trillion, almost three times the previous all-time high in 2017.
Possible Scenario for Bitcoin
4 hour chart BTC/USD. Source: TradingView
One possible scenario for the bitcoin price is another sideways move with a decline in BTC/USD. To do so, the market will need to retest the above support and resistance levels within the current range.
After these tests, the consolidation will be over and a new wave of momentum can begin. In this context, the threshold of 60,000 can be used as a resistance for some time to come. Hence the new test in the region with a budget of $55,000. The $60,000 will be retained as long as the $60,000 is used as resiliency.
Maintain a support level of $55,000. The $68,000 opens the door to receive $68,000 as the next attraction.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph. Every investment and every stage of trading involves risk. You should do your own research before making a decision.
frequently asked questions
Will the price of bitcoin go up or down after halving?
John Todaro, head of research at trading tool provider Tradeblock, said the price of bitcoin would nearly double after 2020, citing internal research.
Will bitcoin reset before it splits in two?
In theory, the halving of the price will likely have a positive effect on the price of bitcoin over the next four years. Less BTC is mined by miners, which means less BTC is sold on the market. But as we saw with the bitcoin halving in 2016, the price of bitcoin tends to fall both before and after the halving.
Will bitcoin rise or fall in 2020?
Bloomberg Research 2020 Bitcoin Report Bloomberg Research recently released a new report on the future of bitcoin as an investment. According to a major media center and financial terminal, bitcoin is expected to reach $12,000 and $20,000 by the end of 2020.