Key Takeaways
- Bitcoin has broken through the psychological $50,000 resistance level.
- Further buying pressure could see it rise towards $55,000.
- The $49,200 support level could absorb any spike in profit-taking.
Bitcoin is back above $50,000 for the first time in 100 days, and on-chain data suggests it has more room to run.
Bitcoin Targets Higher Highs
Bitcoin has kicked off the week with a bang as its price moved past the psychological $50,000 resistance level. The sudden upswing saw nearly $70 million worth of short positions get liquidated across the board. Now that doubters have been shaken off, BTC may have what it needs to advance further.
From a technical perspective, the leading cryptocurrency appears to be contained within an ascending parallel channel. Each time Bitcoin has risen to the channel’s upper or middle boundary since Jul. 20, a rejection has occurred, pushing prices to the lower edge. From this point, it tends to rebound, which is consistent with the characteristic of a channel.
BTC recently reclaimed the channel’s middle trendline as support. If the price action seen over the past month repeats, Bitcoin could rise towards the channel’s upper trendline at around $55,000.
This area may have the ability to absorb some of the recent buying pressure. Holders who have been underwater may try to break even on their positions, slowing down the uptrend and leading to a correction.
