Bitcoin Bullish Momentum Reignites: Is BTC Rally Just Getting Started?

NEW DELHI (CoinChapter.com) — Bitcoin’s bullish momentum has reignited above its 50-day simple moving average (50-day SMA; the blue wave in the chart below). The BTC/USD exchange rate signals an upside breakout toward $48,800 by the end of February.

Bitcoin Bullish Momentum Restarts

In the previous prediction, we discussed whether Bitcoin price could surge 10% in February 2024. BTC did remain in a bullish momentum zone above the 50-day SMA and started a fresh rally. The inverse head and shoulders pattern discussed in the previous analysis seems to be playing well.

Bitcoin’s bullish momentum helped it clear its prevailing descending trendline resistance at $43,500 on the daily chart. There was also a clear move above the 61.8% Fib retracement level of the downward move from the $48,750 swing high to the $38,572 low, as shown below.

The price is up over 6% in two days, and the current Bitcoin bullish momentum calls for more upsides. The BTC/USD is now testing the $46,350 resistance. It is close to the 76.4% Fib retracement level of the downward move from the $48,750 swing high to the $38,572 low.

If BTC bulls push the price above the $46,350 resistance, there could be a drift toward the $47,200 level. The next major hurdle for the bulls could be near the $48,800 level.

A daily close above the $48,800 resistance zone could open the doors for a move toward the $50,000 psychological level, where Bitcoin bears might take a stand in the coming weeks. If they fail, the price could drift toward the $51,200 level.

Downside Correction In BTC?

There could be a downside correction if Bitcoin fails to clear the $46,350 resistance zone. Immediate support is near the $44,850 level. The first key support seems to be forming near the previous resistance and breakout zone at $44,300.

The main support is $43,000 and the 50-day simple moving average (blue). A daily close below the $43,000 level could start a steady decline. The next key support is near the $41,200 level. Any more losses might send the price toward the $38,500 region.

Overall, Bitcoin price is gaining pace above $45,000 and the 50-day simple moving average (blue). If BTC/USD clears the $46,350 resistance, it could rally toward $48,800 or even $50,000.