The cryptocurrency markets are set for a quiet end to the week with the overall Bitcoin outlook bullish in the medium-term, despite a near-term correction still on the cards. BTC recovered towards the $48,000 barrier earlier in the week, but without the matching spike in traction. While the lack of momentum on the way to $50,000 isn’t exactly inspiring optimism, BTC so far retains its upside steam. Investors recoup the early week-gains as the daily moving average (MA 200) withstood the sell-side pressure. Amid the recent pullback, BTC/USD continues its bullish run with a bounce from $44,216 intraday lows. At the time of this post, the no.1 crypto is trading at $45,500. It’s still unclear if the present positive impulse will lead to a fresh rise or a more severe drop. However, a fresh Bitcoin bullish indicator emerges in the Global Crypto Adoption Index with a rise of grassroots cryptocurrency adoption growing 10x. As stated by Chainalysis, the 2021 Global Crypto Adoption Index shows worldwide adoption jumping over 880% with P2P platforms driving cryptocurrency usage in emerging markets.
Key Levels
Resistance Levels: $53,000, $50,000, $47,000
Support Levels: $45,000, $43,000, $40,000
BTC/USD Daily Chart: Ranging
Bitcoin is currently stuck in a trading range below $47,000. Following a sharp bounce off $44,216 during Wednesday’s trading session, Bitcoin is now above the $45,000 psychological zone. From last month’s low of $29,302, the world’s largest cryptocurrency has already made another higher low in its barnstorming up-trend. The RSI returns above line 60, indicating the possibility of an advance.
BTC/USD may attempt to recover towards the key resistance level of $50,000 before falling to the first support level of $43,000 in the most likely scenario. If the pair breaks through the key resistance level, we can expect a further rise to the second barrier level of $53,000. Alternatively, the BTC/USD pair might drop below $43,000, the next support level. A break below the next support might push the price down to $40,000.
BTC/USD 4-Hour Chart: Ranging
On the 4-hour time frame, BTC’s strong buying activity has been confirmed by a break above the intermediate barrier at $45,000. To complete the run in its favor, bulls must close above the lows origin and the bearish zone of $44,000. Afterward $50,000 would be the final stumbling block before a full-fledged reversal. With $43,000 as critical support, an RSI near its midline may force a short drop.
The price of BTC/USD, on the other hand, is still comfortably in positive territory and within its ascending channel above the moving average (MA 200). As a result, the chances of further losses are slim at this time. Nevertheless, the 4-hour moving average (MA 50) may prevent buying pressures near $46,000. Should this resistance fail, BTC/USD will regain its bullish momentum and could re-challenge the weekly top above $48,000 level.
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