Bitcoin is exchanging hands slightly above $58,000 in the wake of a key technical breakout. Price action has been consistently bullish since Visa Inc. announced that it would start accepting cryptocurrency transactions on its platform.
According to Visa, demand for cryptocurrency transactions has been growing and it was time to make a move. Initially, USDC will be used, allowing users to spend digital assets without converting to fiat.
Bitcoin pushed the uptrend further following the announcement made on Monday. Besides stepping above the 50 Simple Moving Average (SMA) resistance on the 4-hour chart, BTC lifted past the descending parallel channel’s upper trendline. Additionally, the ongoing liftoff was validated by a break above the 100 SMA.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator on the 4-hour chart suggests the bellwether cryptocurrency is in the bulls’ hands. The bullish outlook has been reinforced by the MACD line (blue) crossing above the signal line. The indicator has also returned into the positive region, adding credence to the narrative.
BTC/USD 4-hour chart
It is essential to realize that establishing support above $58,000 will ensure market stability. Similarly, buyers will be encouraged to increase positions on the digital asset, speculating $60,000. Moreover, a break above $60,000 would trigger massive buy orders as BTC rolls to $62,000 and other higher price levels.
It is worth mentioning that the bullish outlook will be invalidated if Bitcoin closes the day under $58,000. This will increase overhead pressure on the 100 SMA support, while massive losses will be triggered if the price slices through this anchor zone. BTC could revisit the support between $50,000 and $52,250.
Bitcoin intraday levels
Spot rate: $58,050
Trend: Bullish
Volatility: Growing
Support: 100 SMA and 50 SMA on the 4-hour chart
Resistance: $60,000 and $62,000
