- Bitcoin spikes to $47,450 for the first time after closing the day above $40,000.
- The technical breakout eyes $53,620, suggesting that the top is nowhere near.
- BTC’s list resistance path is still on the upside as projected by the MACD.
Bitcoin resumed the uptrend on Monday after confirming support at $38,000. Closing the day above $40,000 also encouraged more buyers to join the market. The flagship cryptocurrency broke past the previous all-time high at $42,000, pushing the bullish leg above $45,000.
The rally was unstoppable towards $50,000 but Bitcoin stalled slightly above $47,000. At the time of writing, the bellwether cryptocurrency is trading at $45,780 after making a minor retreat from the new record highs at $47,450.
Short-term analysis on the 4-hour chart suggests that Bitcoin’s list resistance path is still upwards. For instance, the upward trend has been reinforced by the Moving Average Convergence Divergence (MACD). The technical indicator is moving higher above the midline at the same time the MACD line (blue) shows that Bitcoin is still in a buy zone.
At the same time, an inverse head-and-shoulders pattern has formed on the same 4-hour chart. This pattern is bullish and currently suggests that Bitcoin has some distance to cover before hitting the target at $53,620.
Therefore, trading above $45,000 will be a bullish signal for investors to hold onto their bags while anticipating a breakout above $50,000. Moreover, it has been found that only 11% of the entire Bitcoin supply is available for trading. In other words, demand is currently high amid constricted supply. Thus, the pioneer cryptocurrency could continue to rally in the near term.
Note that, a correction will come into the picture if Bitcoin closes the day under $45,000. The trend reversal could go as far as $38,000 in search of formidable support. However, subtle buyer congestions at $43,000 and $40,000 will absorb the selling pressure, preventing a sharp price drop.
Bitcoin intraday levels
Spot rate: $46,175
Relative change: -290
Percentage change: -0.6%
Read more: CoinGape