- Bitcoin renews the uptrend following the colossal dip from $58,000.
- Support at $44,860 played a critical role in the ongoing recovery, leading to gains past the 100 SMA.
- BTC will fail to rally to $60,000 if support above $50,000 does not hold in the near-term.
The cryptocurrency market is still in red, but recoveries have begun following the massive breakdown on Monday and Tuesday. Bitcoin dropped from all-time highs around $58,000 to support at $44,860 in less than 48 hours. The flagship cryptocurrency has bounced off the support, shooting above the coveted $50,000.
At the time of writing, Bitcoin is dancing at $50,500 after rising above the 100 Simple Moving Average (SMA) resistance on the 4-hour chart. On the upside, all eyes are glued on the next key resistance at the 50 SMA.
Trading beyond this zone is likely to pave the way for gains above $54,000 which will set the pace to $60,000. Bitcoin’s short-term technical picture has started to improve, starting with the jump above the 100 SMA.
Consequently, Moving Average Convergence Divergence (MACD) is showing signs of recovery from the negative region. Moreover, the MACD line (blue) has started moving upwards and could soon cross above the signal line, suggesting that it was time to buy into the bellwether cryptocurrency.
Meanwhile, higher support is critical to sustaining the uptrend; therefore, BTC must close the day above 100 SMA if not $50,000 to encourage the bulls to stay put, expecting the next upswing.
BTC/USD 4-hour chart
On the flip side, Bitcoin may not continue with the uptrend to $60,000 because it is not out of the woods yet. It is worth noting that if support at $50,000 or the 100 SMA is lost, BTC will reengage reverse gears, resulting in losses back to $44,860.
Bitcoin intraday levels
Spot rate: $50,500
Relative change: 1,470
Percentage change: 3%