Bitcoin Rebounds and Breaks $45,000 Overhead Resistance as It Targets the $48,000
The price of Bitcoin (BTC) broke through the $45,400 overhead resistance, while the largest cryptocurrency asset rallied to a high of $47,162.
The bears have been building a strong resistance since February 8. The recent breakout suggests that the selling pressure at the overriding resistance has eased. After the recent breakout, the BTC price is expected to recover to the psychological price level of $50,000.
However, buyers will face another resistance at the $48,000 high. Bitcoin will rally above the psychological price level of $50,000 once the resistance at $48,000 is overcome. The bullish momentum will extend to the high at $52,000. However, if the buyers fail to overcome the resistance at $48,000, the market will fall back to the support at $46,800. In the meantime, BTC/USD has continued to rise to previous highs, but faces initial resistance at $47,500.
Bitcoin indicator reading
The current uptrend has brought Bitcoin to level 69 on the Relative Strength Index for period 14. The largest cryptocurrency has reached an overbought region of the market. It could be that Bitcoin is rejected at the recent high. However, in a market with a strong trend, the overbought condition cannot last. Nonetheless, Bitcoin is above the 80% area of the daily stochastic. This indicates an overbought condition for the cryptocurrency.
Major Resistance Levels - $65,000 and $70,000
Major Support Levels - $60,000 and $55,000
What is the next direction for BTC?
On the 1-hour chart, BTC/USD is in an uptrend. The current uptrend encounters rejection at the $47,500 resistance zone. The uptrend will resume when the current resistance is broken. Meanwhile, the March 28 uptrend has shown a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that BTC will rise to the 1,272 Fibonacci Extension level or $48,195. The price action shows that buyers have not yet overcome the first resistance at $47,500.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.
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