- Bitcoin is on a rally higher with renewed interest from buyers in cryptocurrencies overall.
- Buyers might be facing a short-term squeeze to the downside, but a few technical indicators are good entry points for a long.
- It is crucial that buyers push Bitcoin beyond $48,742.
- If Bitcoin can break a historical triple bottom from May, it is set for another run of 22%.
Cryptocurrencies have been very much in favor these past few weeks as buyers have rediscovered interest and are investing in several cryptocurrencies again. This makes for a favorable tailwind in the asset class that pushes prices further upward and attracts new buyers to return to the market.
Bitcoin has reclaimed a few interest levels but got rejected at $48,742. It is crucial now that buyers can push Bitcoin beyond this point so that the rally can continue. Otherwise, buyers will start to sell more of their positions around these levels, and sellers will begin to take over.
BTC needs to stay above $48,742
The ascending green trend line is a good indicator and barometer that shows whether the rally is still intact. It will be essential to watch that this trend line does not break to the downside. Short-term support can be found at $46,000 on a psychological level and just below the 200-day Simple Moving Average (SMA) comes in as another support. Therefore, buyers should not have a difficult time finding entry points to add to their long positions.
BTC/USD daily chart
Should the green ascending trend line break to the downside, expect an aggressive squeeze-out from the buyers dropping out of their positions. This will translate itself into Bitcoin falling to $38,000 rapidly, and just below $36,709 will be the next support.
To the upside, Bitcoin first needs to break and hold $48,742 as the first resistance level. Expect $50,000 as well to be a fundamental psychological level. Once those hurdles are cleared, Bitcoin has more room to move toward $59,586. That level falls in line with a triple top from May and is just below the $60,000 psychological level.
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