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Bitcoin had successfully flipped the $47,000 level this week. A welcome change after the digital asset had spent a long stretch of time plagued by low momentum. It officially signaled a break out of the consolidation of the past two-and-a-half months. Now the real work begins as bears have begun mounting significant resistance to keep the cryptocurrency from breaking above $50,000.
The Point To Beat
Although Bitcoin continues to hold above $47,000, there is still a lot of opposition to the digital asset in this region. $47,500 remains a technical level that has shown itself throughout various rallies in history. This time around, bears are camping at this technical level, making it a significant resistance to point to beat. Otherwise, the goal of $50,000 will remain unrealized.
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If the digital asset is able to successfully beat this point and form support above it, then there will be not much opposition in the race to $50,000 as the next important point will lie above this level. A push past $50,000 would set the cryptocurrency on another path towards $53,000. This time around, solidifying BTC’s campaign towards a new all-time high.
$47,500 is now the point to beat | Source: Arcane Research
Nevertheless, Bitcoin has been unable to break through as its single attempt to do so has been met with resistance that has beaten it back down towards the low $47,000s. BTC continues to hold strong at this point though.
Bitcoin Holding Up Well
Even though bitcoin had taken a beat-down after testing the $47,500 resistance point, it has quickly found its footing. One important thing to note is where the digital asset looks to have formed an important support level.
BTC fails to beat $47,500 resistance level | Source: BTCUSD on TradingView.com
Arcane Research notes that BTC looks to have flipped $45,000, which was the resistance to beat in the early innings of the rally, into a support level. This means a slide below $47,000 may see the digital asset fall below $46,000 but will most likely find significant support at this $45K level. Although a fall below this will quickly send BTC back to the low $42,000s given it is more akin to a sliding scale.
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Bitcoin is now comfortably trading above the 50-day and 200-day moving average, cementing both a short and long-term bullish outlook for the asset. It continues to hold firm as it is trading at $47,300 at the time of this writing.
Featured image from Coingape, charts from Arcane Research and TradingView.com
