- BTCUSD ascends sharply after claiming 50-day SMA
- Currently challenges the December peak of 44,785
- Momentum indicators are starting to look overbought
BTCUSD (Bitcoin) experienced a strong decline from its recent two-year peak of 49,051, dropping to as low as 38,460. However, the price has managed to storm back and recoup a significant part of its losses, testing the crucial 44,785 resistance zone on Thursday.
If the price conquers the December peak of 44,785, the bulls could then aim for the January resistance of 45,912. A jump above the latter could shift the spotlight to the two-year high of 49,051. Surpassing that region, Bitcoin could surge to fresh multi year highs, where the 50,00 psychological mark could serve as the next resistance territory.
On the flipside, should the advance falter, the inside swing low of 41,420 could act as the first line of defence. In case of a downside violation, the price may face the December support of 40,175. Further declines might encounter strong support at the 2024 bottom of 38,460.
In brief, BTCUSD’s advance has accelerated after the profound break above the 50-day simple moving average (SMA). Therefore, the focus now shifts on the December peak of 44,785, where a failure to conquer that region could trigger a pullback.