Bitcoin: Chances of a breakout above $ 50,000 are high but …

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Bitcoin eased many uncertainties after it opened in the green and briefly exceeded $ 49,000 yesterday. Since this decision was made following a descending breakout of the channel, the market is expected to rise.

However, this has not been the case until now, as Bitcoin was still struggling with selling pressure around the $ 48,000 price point. The market also appeared to reflect a late reaction to whales aggressively buying BTC. The odds of a breakout above $ 50,600 were still high, but a return to $ 46,000 could also be a possibility.

4 hour BTC chart

Source: BTC / USD, TradingView

The lower trendline, which stretched from the late July low, has already been overcome by selling pressure as BTC closed below $ 47,000. As buyers reversed the script and pushed BTC back above that trendline, the momentum seemed to wane almost instantly.

Additionally, the past few days have seen troublesome resistance around $ 49,400, preventing BTC from retesting the $ 50,000 price level. If this continues to be the case, BTC would fail to hit a new high above $ 50,600, putting its uptrend in jeopardy.

BTC back to $ 46,000?

Interestingly here, BTC faced similar concerns as it tried to break its Fibonacci extension to 78.6% in mid-August. After two failed breakout attempts, BTC came back down to $ 44,000, triggering a strong bullish response.

However, the chances of a pullback to $ 44,000 were low. Instead, this account shows that BTC has threatened to reverse its uptrend before, but buyers have intervened at significant price points.

So where can buyers trigger another bull run? An immediate reaction could take place at its press time level of $ 48,800 as the area collided with BTC’s lower trendline. A double bottom formed at $ 46,000 would also work favorably if BTC dips in the next few days. When prices go above $ 50,600, the next big step would be a close above $ 52,700.

Reasoning

The 4 hour RSI traded above its equilibrium and gave the bulls a slight edge. In addition, the -DI and + DI indices of the Directional Movement Index moved closer, a sign that BTC did not have a clear market trend. On the bright side, Awesome Oscillator responded to two lower peaks by moving up above the half line. This meant that the bullish momentum was creeping into the market.

Conclusion

Those expecting an immediate blowout might have to wait another 24 hours, which would add more clarity to BTC’s long-term trajectory. If BTC fails to close above $ 50,600, another drawdown can be expected around $ 46,000. However, recent movements suggest that this may not be the worst case scenario.

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