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The pioneer cryptocurrency looks unstoppable as it continues to trend upwards. Even though Bitcoin faces a stiff resistance level ahead, an outburst to $52,000 appears imminent.
Bitcoin Crosses $50,000
Bitcoin has broken through $50,000 for the first time in over a month, showing no signs that it wants to slow down.
The top cryptocurrency is defying the current downward trend playing out in traditional financial markets, bringing the crypto market capitalization up to almost $2.2 trillion.
The Tom DeMark (TD) Sequential indicator had previously flashed a sell signal on BTC’s 12-hour chart. The bearish formation forecasted that the flagship cryptocurrency was bound for a brief correction before the resumption of the uptrend. However, Bitcoin printed a green two candlestick today, invalidating the pessimistic outlook.
Further buying pressure could see Bitcoin rise toward $52,000. This bullish target results from the y-axis of a falling wedge formed between Aug. 19 and Oct. 1.
It is worth noting that the TD’s setup trendline sits right below the wedge’s target at $51,200. This resistance level could play a significant role in Bitcoin’s uptrend, determining what happens next.
For instance, slicing through $51,200 could generate “fear of missing out” among investors, encouraging them to buy. The spike in buying pressure could be significant enough to push prices beyond the $52,000 target presented by the falling wedge.
If this were to happen, Bitcoin would then need a decisive close above $54,500 to continue its uptrend toward $100,000.
On the other hand, profit-taking might increase around the $51,200 level. Bitcoin could then retrace to $48,000, depending on how much downward pressure is generated. Breaking through this crucial support area may result in panic selling, pushing BTC down to $45,000 in a bearish scenario.