Key Takeaways:
- Bitcoin price rallied above the $50,000 resistance zone.
- BTC/USD is following a parabolic curve with support at $48,500 on the weekly chart.
- The price could struggle to clear the $56,350 resistance in the short term.
New Delhi(Coinchapter.com): Bitcoin price is up over 10% and trading well above $50,000. BTC/USD could extend its rally toward the $56,350 resistance in the coming days.
Bitcoin Price Reclaims $50K
In the past three weeks, Bitcoin price saw a steady increase and uptrend above the $40,000 resistance. The BTC/USD pair broke many hurdles near $45,000 to move further into a positive zone. It also dragged altcoins such as Ethereum, Solana, and BNB higher.
There was a clear move above the 61.8% Fib retracement level of the main decline from the $68,958 swing high to the $15,822 low. Bitcoin price is now trading well above the $50,000 resistance and the 50-week simple moving average (blue).
It seems like the recent increase in the total US net spot Bitcoin ETF inflow is helping the market sentiment. The total inflow is now 91,618 BTC.
The current price action is bullish, and Bitcoin seems to be following a parabolic curve with support at $48,500 on the weekly chart. The first meaningful resistance on the upside is near the $56,350 level. It is close to the 76.4% Fib retracement level of the main decline from the $68,958 swing high to the $15,822 low.
A clear move above the $56,350 resistance could set the tone for a move above the $60,000 level. In the stated case, if BTC stays above the parabolic curve, there could be a pump toward the last all-time high. Any more gains might call for a test of the $75,000 level.
Pullback In BTC?
If Bitcoin fails to clear the $56,350 resistance, there could be a pullback. The first major support could be near the curve, currently at $48,500. A downside break and a weekly close below the parabolic curve might start a substantial decline.
In the stated case, BTC might correct lower toward the $40,000 support zone. The main uptrend support sits at $32,000 and the 50-week simple moving average (blue). A weekly close below the $32,000 support could spark a fresh downtrend.
Overall, Bitcoin is following a strong uptrend above $48,500. To continue higher, BTC must settle above $56,350 and then reclaim $60,000. Conversely, there could be a pullback toward the $40,000 support in the coming months.
