Bitcoin has started Q4 with a bang, surging by more than 15% in the last 36 hours. BTC has broken through the $45,000 resistance level, implying that higher highs are possible.
Bitcoin Has Entered A Rally
Bitcoin is on the rise. The leading cryptocurrency broke through $48,000 earlier today and appears to be on its way to $52,000.
BTC recently went through a more than six-week consolidation period. The price charts show that the asset formed a falling wedge during the stagnation period, which began on August 19. However, the start of the year’s final quarter may have encouraged investors to buy in.
The sudden increase in buying pressure has completely stopped the downtrend and pushed Bitcoin above the upper trendline of the wedge, resulting in a trend reversal. Higher highs are possible given the recent breakout.
The height of the wedge’s y-axis indicates that Bitcoin is poised for a 15.5 percent rise. With such a bullish target, BTC’s market value would be just under $52,000.
According to Bitcoin’s price history, $50,000 represents a psychological resistance barrier. Throughout the year, it has either failed to break the barrier or has trended downward after reaching $50,000. Because of the significance that market participants place on this benchmark, a decisive close above it would be a strong indication that BTC is poised for further upside.
The wedge’s target at $52,000 is the next key level after $50,000. More buying pressure could push BTC toward the next critical resistance level at $54,400. A break of that price point could potentially lead to the uptrend continuing toward $100,000.
Nonetheless, if the $50,000 is rejected, BTC could fall to $45,000.