Bitcoin has hit a roadblock in its recent upward trajectory. After the digital asset had successfully broken above $47,000, it had been subsequently beaten down by the bears. This was a result of an important resistance point that proved impossible for bitcoin to beat at the time. It continues to struggle with this point even now and has declined into the $44,000 territory. This point remains the level to beat for the cryptocurrency to once more register a bullish trend.
Bitcoin Fails To Break Resistance
Bitcoin establishing a bullish trend can sometimes be a tricky thing. This is due to the fact that as the price grows, the resistance being mounted by bears at various levels becomes increasingly hard to beat. This was the case at the $47,500 level where bitcoin had met significant resistance. Failure to break above this level had sent the digital asset spiraling back down and eventually landing in the low $40,000s.
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This point is pertinent for bitcoin to beat given that it is the major resistance between the asset and the coveted $50,000 price point. It may not be the previous all-time high but hitting $50,00 surely puts the cryptocurrency on a path to setting another ATH.
$47,500 is an important technical level for BTC which means a failure to maintain a position above this would be brutal, as evidenced by the recent downtrend. After this had been the $45,000 level, where it was presumed bulls had formed significant resistance. However, with BTC tumbling below this point, it is obvious that the support formed at this level fails to rival that of the $36,000 to $38,000 level.
BTC on a downward correction | Source: BTCUSD on TradingView.com
This is nothing more than a correction though after a tremendous bull run, notes Egor Volotkovich, Executive Director of cross-chain solutions at EVODeFi. “Bitcoin is leading a general market correction today as it retested the $45,000 support level after surging to a 24-hour high of $47,106,” said Volotkovich. “The correction is a somewhat temporary breather that the BTC investors are exhibiting following periods of consistent growth and resilience across the board.”
Moving Towards Better Things
In the long term, Bitcoin continues to look better. The digital asset which had broken above its 50-day moving average had been able to establish a more bullish trend in the short term. Taking this on into the long term.
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It has also formed new support around its 200-day moving average which has always been a sign of good things to come in the past. And with momentum picking up in the last month and buying ramping up both on the institutional and retail level, there is a stronger argument for the long-term profitability of the digital asset.
“With the continuous buying momentum as seen by the inflows into major BTC-hinged products like the Canadian Bitcoin ETFs, the chances that Bitcoin’s momentous growth will be reintroduced in the near future is high, and should this happen, we may see prices retest the $48,000 benchmark before mid-month,” concluded Egor Volotkovich.
Featured image from MARCA, chart from TradingView.com
