A Move to $50,000 is “On the Table” for Bitcoin as Bulls Defend Key Support
- Bitcoin has seen some mixed price action as of late, with bulls struggling to defend the cryptocurrency against a break below $40,000 as bears try to reverse its momentum
- The crypto’s ability to hold above this level is promising, but it remains unclear as to how long it will hold
- If bulls can flip this previous resistance level into support, it could prove to be a strong base for the crypto to grow upon in the near-term
- One trader is now expecting a rally up towards $50,000 in the near-term, noting that the selling pressure has not yet been significant enough to reverse its short-term uptrend
Bitcoin has been caught within the throes of a short-term consolidation phase throughout the past couple of days.
Where the market trends in the mid-term should depend largely on whether or not bulls can hold the $40,000 level as support.
It has attempted to push into the mid-$40,000 region on a few occasions, but each time has resulted in rejections.
One trader is now noting that he fully expects it to see a move up towards $50,000 in the near-term, which could come about rather quickly if its consolidation trend persists.
Bitcoin Consolidates at $40,000 as Bulls Try to Gain Edge Over Bears
At the time of writing, Bitcoin is trading up marginally at its current price of $40,500. This is around the price at which it has been trading throughout the past few days.
Bulls have tried on a few occasions to push the cryptocurrency into the mid-$40,000 region, where its all-time highs currently sit, but each attempt has been met with intense selling pressure.
A strong move higher could allow the entire market to rise, extending the parabolic momentum seen by both BTC and large altcoins as of late.
Analyst: BTC Likely to Reach $50,000 in Coming Days
While sharing his thoughts on where Bitcoin might trend next, one analyst explained that he is watching for a move up towards $50,000 in the near-term.
He notes that even a sharp pullback will likely be followed by significant upside due to the market’s present bullishness.
“The main price points I’m watching. While above, 45k and 50k psychological short term are on the table. Regarding the higher time frame, regardless if we get a sharp pullback we can see a continuation higher. If 20k breaks then I’ll reconsider.”
Image Courtesy of AMD Trades. Source: BTCUSD on TradingView.
The coming few days should provide insight into where the entire market will trend next and whether or not Bitcoin will further extend its parabolic momentum.
Featured image from Unsplash. Charts from TradingView.
Published at Sat, 09 Jan 2021 18:58:51 +0000 A Move to $50,000 is “On the Table” for Bitcoin as Bulls Defend Key Support