Bitcoin is heading towards $ 50,000

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Bitcoin remains strong

Bitcoin has managed to break through the resistance at $ 48,000 and continues to move towards the psychologically significant level of $ 50,000. Meanwhile, Ethereum has climbed above resistance at $ 3,600 and is trying to gain additional bullish momentum.

Smaller cryptocurrencies like Dogecoin or XRP have failed to develop a material momentum, and it seems that traders’ interest today is focused on Bitcoin and Ethereum.

Bitcoin Dominance, which measures Bitcoin’s market cap as a percentage of the crypto’s total market cap, is stuck at almost 41%. The recent Bitcoin rebound has not provided significant support for Bitcoin Dominance, indicating that traders’ interest in altcoins remains strong.

Technical analysis

Bitcoin continues to rise and tries to move above the resistance level at $ 48,000. The RSI remains in moderate territory, and there is plenty of room to gain additional bullish momentum in case the right catalysts emerge.

A successful test of resistance at $ 48,000 will pave the way for testing the next resistance level at $ 50,000. If Bitcoin breaks the key resistance at $ 50,000, it will attract more speculative traders and head to the next resistance level which is located at $ 51,500.

A move above the resistance at $ 51,500 will pave the way for the resistance test at $ 53,000. If Bitcoin manages to move above the resistance at $ 53,000, it will move to the next resistance level at $ 55,000.

On the support side, Bitcoin needs to move back below $ 48,000 to have a chance to develop short-term bearish momentum. The next level of support for Bitcoin is located at 20 EMA at $ 47,300.

If Bitcoin drops below the 20 EMA, it will head towards support at $ 46,000. A successful test of this level of support will lead to a test of support at the 50 EMA at $ 45,500. If Bitcoin drops below the 50 EMA, it will continue its downtrend and head towards the support level at $ 44,000.

The story continues

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This article originally appeared on FX Empire

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