Bitcoin Price Forecast: BTC elevation to $52,000 catches momentum

By John Isige
Published March 3, 2021 Updated March 3, 2021
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Bitcoin Price Forecast: BTC elevation to $52,000 catches momentum

By John Isige
Published March 3, 2021 Updated March 3, 2021
  • Bitcoin bounces off short-term support at $47,000 as bulls nurture the uptrend to $52,000.
  • Bulls must defend the support at the 50 SMA on the 4-hour chart to avoid retreats toward $42,000.

Bitcoin embraced support at $47,000 on Tuesday following the rejection at $50,000. Losses toward $42,000 had become apparent, especially after the 50 Simple Moving Average (SMA) support had been shattered. In the meantime, the flagship cryptocurrency has bounced off the short-term support and is setting the pace toward $50,000.

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The key short analysis takeaways for Bitcoin is its trading within the confines of a descending parallel channel. Towards the end of February, the channel’s lower boundary assisted in keeping bears in check, the most recent bounce being at $42,800.

Bitcoin has reclaimed the position momentarily lost above the 50 SMA and is dancing slightly above $48,650. Buyers are looking forward to two crucial moves; breaking above the channel’s upper boundary and settling above the 100 SMA. This will get the pioneer cryptocurrency out of the woods and place it on the trajectory toward $52,000.

BTC/USD 4-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

The bullish narrative has been validated by the Moving Average Convergence Divergence (MACD) on the 4-hour chart. The indicator follows BTC’s trend and measures its momentum. Traders can also use it to identify positions to sell the top or buy the bottom.

For now, Bitcoin is still in the hands of the bull, primarily with the indicator resting above the midline. Besides, the MACD line (blue) is holding above the signal line, adding credence to the bullish picture.

It is worth keeping in mind that Bitcoin’s uptrend can fail to continue if the channel’s resistance remains unshaken. Moreover, if the support at the 50 SMA fails to hold again, losses toward $42,000 will start to build pressure. Note that the 200 SMA at $45,000 is in line to provide anchorage,

Bitcoin intraday levels

Spot rate: $48,650

Relative change: 168

Percentage change: 0.4%

Trend: Bullish

Volatility: Low

 

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1116 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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