• Bitcoin is only a few percentage points away from its recent high of $52K

  • There is a reason why Bitcoin has risen to the top and is regarded as a reliable indicator of sentiment across the entire cryptocurrency domain. After collapsing in a free fall selling pressure in September 2021, resulting in a 25% loss in three weeks, it was assumed that BTC would continue to fall, replicating the May 2021 fall.

    According to history, Bitcoin has always taken a sharp U-Turn from the points of no return. BTC, on the other hand, jumped back from the jaws of an even deeper selling sentiment that was building up this time. In just over a week, the price has risen from $40,500 to $51,500, indicating a strong buying sentiment. BTC is currently valued at around $967 billion, falling just short of becoming a trillionaire for the second time after May 2021.

    Despite the negative perceptions of Bitcoin’s real-world value and practical applications, it performed admirably in 2021. Concerns about crypto regulations in China, as well as rising power consumption, have undoubtedly triggered a significant pullback in BTC. When considering BTC as a bullish trending crypto asset, the first number that comes to mind is $55,000.

    Analysis of the Bitcoin Price

    BTC has returned with a bang, returning more than 25% in less than a week. However, there are a number of critical support, resistance, and technical levels to consider when forecasting price action in the near term.

    Bitcoin price found support at $40,500 levels and consolidated for a few days before retesting the buying sentiment at $40,500 before attempting to break through the $44,500 resistance level. BTC emerged as a strong cryptocurrency with a single-day gain of 9.86 percent in closing value, closing above its immediate resistance level and important 200-day moving average.

    On the first day of October 2021, the MACD indicator had already indicated a golden crossover at a positive movement. RSI, on the other hand, has already jumped from a neutral stance of 40 to an extreme positive level of 65. As a result, if buying sentiment continues to move upward as it has for the entire month of October, BTC is very close to indicating a clear overbought zone.

    Crossing $50,000 was another accomplishment for BTC, as the last resistance level on daily charts has been decimated for the time being. Maintaining this level will be critical in transforming this movement into a more significant rally aiming for $60,000. However, BTC has a history of retracing to previous intense support levels, resulting in a trend reversal. According to the BTC price forecast, this price action should be avoided at all costs.

    Bitcoin’s price action has been decisive, but looking at the hourly charts provides more clarity on the trend and sentiment. For the time being, $47000 to $48000 have become a consolidative action for buying levels, while $51500 to $52000 have become a resistance level. Furthermore, the RSI and other indicators have been critical. Because of this confluence of signals, one should wait for $52,000 to be breached on daily charts before entering new positions.

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