The last time the BTC price was above $50,000 was in December 2021, making its way to the low around $15,500 reached in November 2022.
Reaching the $50,000 level was facilitated by:
→ waiting for the halving, after which the price of Bitcoin is believed to receive a bullish impulse due to a reduction in supply;
→ the effect of the approval of a Bitcoin ETF;
→ expectation of easing of the Fed’s monetary policy, which increases interest in risky assets. By the way, the Nasdaq-100 technology stock index set a historical high yesterday, breaking the level of 18,000 points.
At the same time, the BTC/USD chart shows that:
→ the price of Bitcoin moves within an ascending channel (shown in blue), which dates back to last fall;
→ from the point of view of technical analysis, with this channel construction, the price of Bitcoin still has some room to rise to its upper limit.
However, please note that:
→ the widely known crypto fear and greed index has a value of 79 out of 100, indicating extreme greed;
→ the RSI indicator is in the overbought zone and is forming a bearish divergence pattern, which is a sign of weakening buying pressure;
→ exceeding the psychological level can result in a false breakout, as was the case with a short-term decline in the price of Bitcoin below the support level of 40,000.
Considering the above arguments, there is reason to believe that if the Bitcoin rally continues, it may soon be replaced by a correction to allow the market to “blow off steam” at least in the short term.
FXOpen offers the world’s most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.
*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
