Why BTC Price Breaking $ 48,000 Resistance Key to New All-Time Highs

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Bitcoin (BTC) and the crypto market have accelerated sharply in recent weeks, as Bitcoin has jumped 60% from July lows, while Ether (ETH) has shown strength with a rally of 90% while altcoins saw massive gains across the board.

Sentiment has also shifted sharply. Three weeks ago, the majority of people were discussing a potential breakdown to $ 20,000, including the effects of a death cross. But now a golden cross could occur on Bitcoin with a potential breakout above $ 48,000 certainly on the table.

Key resistance at 48KBTC / USD 1 day chart. Source: TradingView

Bitcoin’s daily chart gives us a ton of information. The market is approaching a substantial resistance zone as the breakout above $ 48,000 would signal a bullish continuation and a potential test of all-time highs.

So the $ 48,000 region is a critical price as it was the support before the market started to collapse. Now this resistance is undergoing its first test, which is unlikely to be broken on the first attempt.

In contrast, the market reversed the downtrend. Since the historic high, lower highs have been created and lower lows have been created, signaling a bear market. This downtrend led to a correction of over 50%, leading to expectations of a prolonged bear market.

The recent run has denied this bearish argument as a new high has been set. Beside that, a new higher low was created, confirming the new direction.

Therefore, if the market cannot break above $ 48,000 in the coming weeks, the level to watch for support and ultimately the critical level to maintain that momentum is around $ 37,500. Simply put, higher highs will be reached if BTC manages to maintain above this level.

The last thing to note, however, is the potential bearish divergence. It is not confirmed. But given the recent weakness around the 200-day moving average, a short-term correction is still likely as the market approaches higher temporal resistance.

Total market capitalization versus final resistance zone 1-day total crypto market capitalization chart. Source: TradingView

The crypto’s total market cap has broken through a resistance zone at $ 1.75 trillion. The next area of ​​resistance is approaching, as the crucial breaker before the May collapse was around $ 2 trillion.

A similar construction is found there such as Bitcoin with the $ 48,000 level. An immediate breakout is therefore also unlikely.

A lower low must be established if the market rejects to $ 2 trillion. Similar to Bitcoin’s $ 37.5,000 support level, the same can be said of roughly $ 1.5 trillion for the total crypto market cap.

Altcoin market capitalization at risk of 25% correction? 1-day altcoin total market capitalization chart. Source: TradingView

The altcoin market cap shows crucial resistance at $ 1.15 trillion and also comparable to Bitcoin at $ 48,000. Likewise, a breakout on the first attempt is unlikely and therefore some S / R range should be expected.

Bitcoin: Key Levels To Watch For On Lower Timeframes 4 Hour BTC / USD Chart. Source: TradingView

The critical levels to maintain for Bitcoin to avoid any failure are between $ 44.8 and $ 45.1K. This region must maintain its support to avoid a possible overthrow. The critical resistance for the price of Bitcoin is between $ 47.5 and $ 49,000. If that breaks, the lawsuit is expected to reach $ 55,000 and potentially a new all-time high.

However, once a reversal takes place, many levels of support are found for the price of Bitcoins. The first level of support is seen at $ 42.6K, while the large area of ​​support is found at $ 40.8K.

Such a 15% correction would be very healthy for the market and give people the opportunity to re-enter slightly lower levels. However, the price of Bitcoin is expected to stay above $ 37.5,000 to maintain the current bullish momentum of higher ups and downs.

If that is not possible, then the market may be in store for more blood.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade move involves risk. You should do your own research before making a decision.

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