Bitcoin price slipped marginally under $45,000 during the American session on Thursday. The move was accentuated by the loss of the 200-day Simple Moving Average (SMA). However, the bulls woke up quite fast and pulled BTC upward.
Meanwhile, the flagship cryptocurrency trades at $45,245 as buyers work extremely hard to secure the position on top of the 200-day SMA. Note that closing the day above this level confirms that bulls are mainly in control, and despite that despite the sluggish price action, Bitcoin’s most probable direction is upward.
The daily chart shows that a bullish formation is incoming and could bolster Bitcoin significantly upward. Realize that as the 50 SMA closes the gap to the 100 SMA, the odds of another leg up rise.
It is worth mentioning that the 50 SMA crossing above the 100 SMA is not a golden cross pattern. However, it is a bullish formation all the same and can trigger buy orders that may bring Bitcoin closer to $50,000.
On the upside, sellers recently drew the line at $47,000, challenging Bitcoin’s bid for $50,000. If this barrier cracks, buyers will quickly take down the resistance at this level to pave the way for gains above $50,000. Bitcoin bulls are unlikely to rest until the recovery explores highs heading to $55,000, a move that may stretch the gains to $60,000.
Many analysts expect Bitcoin to close the year, trading around $100,000, including Fundstrat’s Tom Lee. In his latest prediction, Lee said that Bitcoin would recover and discover new price levels alongside the global economy as fears toward COVI-19 go down across the world.
Currently, traders should pay attention to the 200-day SMA support, which, if defended, will allow bulls to focus on lifting above $50,000. Nonetheless, losing this crucial support and closing the day below may trigger sell orders as the MACD flips bearish.
Spot rate: $45,245
Trend: Bullish
Volatility: Low
Support: The 200-day SMA
Resistance: $47,000
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