Why Bitcoin Could Revisit The High $30K’s
Bitcoin has broken $43,000 in a remarkable recovery journey that began at the start of the week. It has been a welcome change to the low momentum recorded in the market this past week. However, although the digital asset is doing well currently, there are still a lot of things that could pull it back down. One of the most prominent is the ability of the cryptocurrency to continue blasting through important resistance points.
The Points To Beat
Bitcoin remains the most valuable asset in the crypto space currently. This is due to its outperformance over the course of its existence. But this has not come without its hurdles, some of which are major resistance points that the asset must comfortably break through to establish the start of a bull trend. One of these important points lies ahead of bitcoin.
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After successfully surpassing the $43,000, bears will wait for the cryptocurrency to near $45,000, where they will mount significant resistance. This point is an important one to beat because it sets the course for another bull rally. Bitcoin has been unable to beat this level this year as bears remain in control. However, a significant shift in buying momentum could present an opportunity to break through.
BTC trading at $42,889 | Source: BTUCSD on TradingView.com
Since the digital asset has already solidified its position above its 50-day moving average, it only makes sense that buying pressure will begin to rise. If it does, then the digital asset will see itself on another path towards testing the $45,000 resistance, which remains the point to beat.
Bitcoin Touching Range Highs Once More
Bitcoin has been in a consolidation trend for the better part of 2022 so far. This trend continues to rage on but the recent recovery has put bitcoin back on the higher ranges of this brutal two-and-a-half months-long consolidation. This move brought upon by the recent upside could signal a break out of this consolidation range, although this is yet to be seen.
BTC could fall below $40,000 if it doesn't break $45,000 | Source: Arcane Research
If the digital asset is unable to break the $45,000 range on its fourth try, then the resulting movement will quickly put bitcoin back into the $42,000 support range. This will be the level to hold for the bulls, otherwise, the digital asset could very well see itself fall back into the high $38K’s. The only good news about this point is the tremendous support present at the $36-$38k level.
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Nonetheless, the cryptocurrency continues to see a recurring trend of higher lows despite the dips. This means that momentum has now gone in favor of the bulls for the time being, although the bulls’ hold on the current momentum is still weak.
Featured image from Euronews, charts from Arcane Research and TradingView.com
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