The probability on buyers’ side is higher, but the value of the Bitcoin must break the immediate support. Last week’s highest resistance matched that of the whole month, so the price will likely reach the target of USD 59,000.
The price of Bitcoin has steadily risen for almost a month and is a few steps away from USD 50,000.
The pioneering cryptocurrency is trading around USD 44,931 and has accumulated a loss of 2.5% in the last 24 hours. It had a bullish week since it grew by more than 4.74%, according to CoinGecko.
The period of high sales remains behind as more coins leave exchanges, putting pressure on the supply. Users withdraw between 75,000 BTC and 100,000 BTC every month.
Although the price has rebounded by 56% in a matter of 3 weeks, there still seems to be distrust among institutional investors. However, most of the on-chain data and the price action in recent days indicate that the bullish rally will continue.
Technical Analysis of the Price of Bitcoin as It Approaches USD 50,000
The BTC/USDT daily chart shows a clear bullish trend, with engulfing candlesticks eliminating minor setbacks in a matter of hours.
There is a decline in the price of Bitcoin that could be about to end, opening the way to momentum in search of USD 50,000.
Even though there could be a relevant correction soon, the probabilities are on the side of buyers. However, the value of the cryptocurrency must break the immediate support, which is currently at USD 44,400.
Right now, the runway for Bitcoin is clear to USD 50,000, so it would not be uncommon to see it reach that target this week.
The Weekly Performance of Bitcoin and the Predictions about Its Price
The BTC market has enjoyed a week during which its price has gone up from USD 43,000 to USD 48,000. There could be a maximum resistance of USD 49,947 and a minimum of USD 35,754 this month.
Last week, the maximum resistance was the same as that of the whole month. Therefore, the price of Bitcoin will very likely break it to reach the target of USD 59,000. However, it will need to pull back to USD 46,000 to bounce.
The BTC index of whales on exchanges reached 90%, the highest level since February 2020 before the massive dumping. When noticing this, it is necessary to be extremely careful. However, the market trend seems to be buying, as 14 technical indicators show, according to TradingView.
Analysts Have Divided Opinions on their Price Predictions
The remarkable rally above USD 46,000 has left analysts divided on the path that Bitcoin will take. Two polarized theories put it on either the way to new all-time highs or the brink of imminent collapse before the end of 2021.
First, Bitcoin may have entered the second stage of a two-year bullish run in which the price will reach above its USD 64,000 all-time high.
Second, the current price surge is a bullish trap pattern known as a dead cat bounce. That will cause Bitcoin to drop much lower than the USD 29,000 levels in late July.
According to Mike McGlone of Bloomberg Intelligence, Bitcoin will reach a price of USD 100,000. Likewise, Tom Lee of Fundstrat Global Advisors predicted that it would reach USD 100,000 by the end of 2021.
By Willmen Blanco
