Bitcoin’s (BTC) price action has been choppy over the past week, giving no clear indications of where its trend will head next. But there are some signs that the bulls are starting to gain the upper hand as the apex cryptocurrency is seemingly getting closer to the crucial $48,000 resistance area.
If BTC can close above the $48,000 region, it would confirm the breakout and open up upside potential towards the $50,000 level. That could also pave the way for a much larger rally. Of course, there are still a few near-term technical risks to consider, including that of the coin barely holding above this year’s open of $46,240, before jumping in headfirst. Nevertheless, it’s worth keeping an eye on this potential breakout pattern.
On Thursday bitcoin broke below the $45,000 level, printing an intraday low of $44,481. Then, despite failed attempts to dive lower on Friday, it rebounded the next day hitting an high of $46,979 with a near 6% two-day gain. At the start of last week, BTC firmed slightly below $48,000, however, after shedding 3,500 points it kept indicating momentary weakness as it continued trading in a trendless move.
Bitcoin has had a tumultuous ride throughout its history. But despite the ups and downs, it has continued to grow in value. Some believe that April is historically one of the best months for bitcoin. In fact, and as ForexLive points out, during the past 11 years, the benchmark crypto “gained in April eight times and declined only three times respectively,” with losses not exceeding more than 3%.
As mentioned, the $48,000 price level remains a crucial area of resistance for Bitcoin to close above. A breakout above this level would mark a bullish continuation and a possible break of the $50,000 psychological mark and even a retest of the $55,000 zone. But again, the upswing will only come following a consolidation above the $46,200 support barrier. This will flip this important level into support and confirm at the same time the start of a new uptrend.
As of this writing, BTC is priced at $46,357, down less than one percent intraday. The $880 billion market cap coin has been on a downward trend since its $69,000 peak in early November.
Disclaimer: The information provided is not trading advice