Bitcoin is on somewhat of a recovery phase right since 21st, December, as the index is looking to go above the key $50k resistance. The largest digital currency by market capitalization got to as high as $49.6k earlier today before slipping back below $49k at press time. The resistance above $49k is real and Bitcoin will have it difficult going above it. However if it does, there are some key price levels you need to see.
Bitcoin is currently stuck in a narrow trading range of $46k-$49 for the last few weeks. Any moves above or below have been largely cancelled out by the respective market forces. Today again, Bitcoin tried to make a move above but could only go as far as $49.6k. The digital asset received a boost in the last few days as the Turkish Lira rebounded strongly, creating strong demand from the Eurasian country.
According to crypto analyst Michael Van de Poppe:
The first breakthrough has happened on #Bitcoin.
But, we still need to break enough levels to state that we’re bullish.
Overall, a breakthrough at $50.5-51.5K and I’m convinced.
Also, 2022 should become a great year overall.
— Michaël van de Poppe (@CryptoMichNL) December 21, 2021
According to John Wick, another pseudonymous crypto analyst:
Well look what we have here ladies and gentlemen.
Our first green bar has appeared!
Now we need to make sure this potential reversal doesn’t confirm. If the next bar does not confirm the reversal, then we should continue the breakout of the descending triangle ✅ https://t.co/MrbkrAqyXh pic.twitter.com/OliTqKrafx
— John Wick (@ZeroHedge_) December 21, 2021
Bullish signals were also reported on the important analytical tool called MACD (Moving Averages Convergence Divergence). According to Dan Tapiero, these signals have cropped up for the first time since late September when the cryptocurrency rose above key resistance levels to post new all time high of around $69k in the process. However, MACD signals have a history of making big indications for a long time before buyers eventually respond to it.
The Fear and Greed Index also saw some uptick in the last two days. It rose from deeply bearish levels of “extreme fear” of around 27 to as high as 45 earlier today. However, even now it is in “fear” category and such that it hasn’t turned bullish but at the same time, it is witnessing the turning of a tide and as a result, we can expect an uptick in the near future.
Well, most traders are now predicting the start of 2022 as a possible point for the revival of the bull run and have given up for the last week or so of 2021. However, if the index can respond by climbing above $50k convincingly, we might have an interesting finish despite the latest setbacks.
Image Source: pixabay.com
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