$ 50,000 received? (BTC price analysis)

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BTC showed significant signs of strength after recovering the critical 200-day moving average, even with the SPX futures dive on Thursday morning. SPX rallied throughout the day as BTC continued to outperform, closing 4.6% higher at $ 46.7,000.

Chart by TradingView

The five-day pullback had less overall volume than the 14-day average, indicating less selling pressure. So far, the 64% rally in BTC from the low at $ 29.3,000 had higher overall volume on bullish days than bearish days. This signals the strength of rallies, with selling pressure weakening during pullbacks.

The recent decline has managed to mark a local low at $ 43.9,000, near the 21-day moving average, an area where many other levels of near-term technical support meet. After forming the local bottom, BTC pushed higher, liquidating up to 600 BTC shorts in 1 hour.

Chart by CryptoQuant

Coinbases’ announcement to invest up to $ 500 million in cryptocurrencies along with 10% of their profits going forward is a short-term catalyst that could help BTC advance.

3-day momentum on the rise

Yesterday’s daily close and 3-day close near the highs gave another bullish momentum – a sign of improving momentum on the mid-point chart. The 3 day momentum is getting closer to the next major buy signal if BTC can push higher for the next 3 day candle close.

It’s important to note that buy signals flashing on mid-to-upper period charts signal further upside in the weeks or months to come – not always an immediate spike.

Chart by TradingViewWyckoff Accumulation according to structure

BTC continues Phase D on Wyckoff build-up after breaking the $ 30,000 to $ 40,000 trading range. He closely followed each phase of Wyckoff’s accumulation, effort / result, and supply / demand principles, which led to supply depletion and a powerful rally to the upside. As long as BTC can hold the near-term low of $ 43.9,000, form the last point of support, and complete phase D, we can expect a rally to the upside as it enters phase E.

Chart by TradingView

Net spot currency flows saw an exit of 1244 BTC during the 5-day pullback, even in a risk-free environment. Measurements on BTC’s miners tracking chain continued to show no major signs of selling as reserves remained stable at 1.85 million BTC.

As previously stated, BTC appears to follow the ideal scenario where the price retreats during the week, finds a local low, and then rises in the second half of the week, with the aim of making a higher weekly close to validate further. the biggest technical purchase. flashing signal since April 2020.

From now until the weekly close, the bulls need BTC to maintain the 200 days as support and continue to push higher in the 47k to 50k area, which has a moderate supply of realized UTXO price distribution. Ideally, the cash buying pressure should absorb any supply entering the market. Once the supply in that area runs out, we can expect a surge above $ 50,000, likely sending BTC to the next main area between $ 51.1,000 and $ 57.1,000.

Overall, the short-term pullback above 200 days is a positive signal for BTC bulls. It remains to be seen whether BTC can hold the 200 days until the weekly close. With strengthening fundamentals, improving technical momentum and on-chain bullish signals, conditions are starting to look favorable for a surge to $ 50,000 soon.

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TradingView cryptocurrency charts.

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