Investors may soon experience “fear of missing out” now that Bitcoin has risen above $50,000.
The pioneer cryptocurrency appears unstoppable as it continues to rise. Despite the fact that Bitcoin faces stiff resistance ahead, an outburst to $52,000 appears to be imminent.
Bitcoin Exceeds $50,000
Bitcoin has broken through $50,000 for the first time in over a month, and it shows no signs of slowing down.
The top cryptocurrency is defying the current downward trend in traditional financial markets, increasing the crypto market capitalization to nearly $2.2 trillion.
On BTC’s 12-hour chart, the Tom DeMark (TD) Sequential indicator had previously flashed a sell signal. The bearish formation predicted that the flagship cryptocurrency would experience a brief correction before resuming its uptrend. Bitcoin, on the other hand, printed a green two candlestick today, invalidating the bearish forecast.
With more buying pressure, Bitcoin could reach $52,000. This bullish target is formed by the y-axis of a falling wedge that formed between August 19 and October 1.
It is worth noting that the TD’s setup trendline is located directly below the wedge’s target of $51,200. This resistance level could be crucial in determining what happens next in Bitcoin’s uptrend.
For example, slicing through $51,200 may instill “fear of missing out” in investors, encouraging them to purchase. The increase in buying pressure could be substantial enough to push prices above the $52,000 target set by the falling wedge.
If this occurs, Bitcoin will require a decisive close above $54,500 to continue its upward trend toward $100,000.
Profit-taking, on the other hand, may increase around the $51,200 level. Depending on how much downward pressure is generated, Bitcoin could retrace to $48,000. In a bearish scenario, breaking through this critical support area may result in panic selling, pushing BTC down to $45,000.