Why Bitcoin Might Revisit the High $30Ks
Bitcoin has broken $43,000 in a remarkable recovery journey that started early in the week. It was a welcome change from the low momentum seen in the market over the past week. While the digital asset is currently doing well, there are still many things that could pull it back. One of the most prominent is the cryptocurrency’s ability to continue to shoot through key resistance points.
The points to beat
Bitcoin currently remains the most valuable asset in the crypto space. This is due to its outperformance over the course of its existence. But this has not come without hurdles, some of which are key resistance points that the asset must comfortably break to establish the start of a bull trend. One of these key points is for bitcoin.
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After successfully surpassing $43,000, bears will wait for the cryptocurrency to near $45,000 where they will build significant resistance. This point is important to beat as it sets the course for another bull rally. Bitcoin has not been able to beat this level this year as bears remain in control. However, a significant shift in buying momentum could provide an opportunity to break through.
BTC trading for $42,889 | Source: BTUCSD on TradingView.com
Since the digital asset has already solidified its position above its 50-day moving average, it only makes sense that buying pressures are starting to build. If so, the digital asset sees itself on a different path to test the $45,000 resistance, which is still about to beat.
Bitcoin hits highs again
Bitcoin has been in a consolidation trend so far for most of 2022. This trend continues, but the recent recovery has pushed bitcoin back to the higher levels of this brutal two-and-a-half-month consolidation. This move from the recent upside could indicate a breakout from this consolidation range, although it has yet to be seen.
BTC Could Fall Below $40,000 If It Doesn’t Break $45,000 | Source: mysterious investigation
If the digital asset fails to break the $45,000 range on the fourth attempt, the resulting move will quickly push bitcoin back into the $42,000 support range. This will be the level to hold for the bulls otherwise the digital asset could very well see itself fall back into the high $38Ks. The only good news at this point is the massive support present at the $36-$38k level.
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Nevertheless, despite the dips, the cryptocurrency continues to see a recurring trend of higher lows. This means momentum is in favor of the bulls for now, although the bulls’ hold on the current momentum is still weak.
Featured image from Euronews, charts from Arcane Research and TradingView.com