- Bitcoin runs another leg higher after breaking $50,000.
- Price action was stuck in a distribution phase since August 20.
- The technical launch on September 5 should spell out more upside to come.
Bitcoin price (BTC) is on the verge of breaking higher and might have a stab at the monthly R1 resistance level at $52,759.59. This comes after Bitcoin was in a distribution phase between $47,065 to the downside and $50,019 to the upside. In between these barriers, buyers and sellers were able to hand over price action toward each other. Buyers picked up BTC each time on August 26, 27, 31 and September 1.
Buyers were smart enough to defend this level from sellers pushing further to the downside and, in the meantime, sit and wait on their positions before the upside presented itself. This caused a momentum build-up and sent prices beyond $50,000 on September 2.
Looking closer at the daily price range, Bitcoin shows that sellers were not too keen to get stopped out of their short positions each time a price varied above $50,000 or tested $48,742. Only after three days, sellers forfeited, and buyers finally gained full control of the price action again.
Bitcoin will unlock more gains
The next and first port of profit-taking for Bitcoin will be the monthly R1 resistance level at $ 52,759. Expect some short-term profit-taking, but mostly the rally should stay intact. The next and most crucial level is the test of that purple ascending trend line. That line holds some historical importance, as Bitcoin has shown since July 20.
Sellers, of course, will have that ascending trend line on their bulletin board as well and will try to take over from buyers yet again. Expect price action to get choppy around those areas near $54,000.
BTC/USD daily chart
In the best scenario where buyers stay in control, expect a break to the upside and a quick run toward the monthly R2 resistance level near $58,000 or roughly 12% gains.
If sellers can defend a break of the ascending purple trend line, a quick dip back toward $50,019 will be the first move sellers will make to book some quick profit. The risk could be that Bitcoin falls back into the range between $50,020 and $47,065.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.