- Bitcoin eyes new all-time highs at $50,000 after slicing through the resistance at $35,000.
- BTC/USD remains in the hands of the bulls and is supported by an improving technical outlook.
Bitcoin’s rally resumed on Wednesday as traders ushered in the European session. The flagship cryptocurrency is trading new all-time highs above $35,000 while aiming for $50,000. At the time of writing, BTC/USD is doddering at $35,650 amid a growing bullish grip.
Bitcoin bulls embrace the notion of lifting to $50,000
The recent deep to price levels slightly under $28,000 sent jitters across the market. Bitcoin bears and critics found a loophole to drive their narrative; the rally had come to a sudden end, and investors should prepare for a broken rollercoaster ride.
However, the king of cryptocurrencies ignored the bearish calls in favor of an upswing above $30,000. Trading above $34,000 (recent pivotal level) has encouraged more buyers to join the market, explaining the majestic upswing above $35,000.
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BTC/USD 4-hour chart
At the time of writing, $36,000 seems to be the only immediate hurdle. If broken, BTC/USD could extend the uptrend to levels above $40,000. Some prominent analysts believe that Bitcoin is set to hit $50,000 by the end of the week.
The Direction Movement Index highlights a bearish divergence while pointing towards an upswing to a local high. The upswing may occur after a correction or perhaps a consolidation.
BTC/USD daily chart
Meanwhile, the bullish outlook will be invalidated if Bitcoin fails to break the resistance at $36,000 to make way for gains above $40,000. On the downside, support at $34,000 must continue to hold to avoid dips towards $30,000, which may result in similar bearish actions as last week’s dive to $28,000.
On the other hand, the Relative Strength Index (RSI) makes its way into the oversold region. Thus, the possibility of a reversal coming into the picture in the near term.
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