Why You May Not Be Seeing Bitcoin Below $50k Anytime Soon

Bitcoin has been trading above $50,000 since the 9th of March. Prior to this, the asset had dipped below that price severally, and a day before it finally corrected above $50,000 and maintained that price mark.

Over two weeks have passed and the big bull has succeeded in retesting $60,000 more than twice. The dip that followed sent prices crumbling to $53k. But a dip below $50,000 may not be recorded anytime soon. Although this doesn’t exempt the possibility of a bear storm ahead, bulls are eyeing $55,000 at the time of this writing. On the Bitcoin chart, a significant contracting triangle has been spotted.

Successfully breaking above this implies that $55,000 has been validated by the bulls. The closest resistance to Bitcoin’s price was around $52,500, this is seen when adjusted to the 100-hourly chart. As of publication, Bitcoin has successfully smashed it and broken above the triangle to hit $54,255.

Bitcoin is now well-positioned to tap the next resistance which is at $54,900. Breaking above this will enable bulls to strengthen momentum and converge on $55,500.

Although the possibility of hitting $60,000 is determined by Bitcoin’s success at hitting the price predicted above, there’s no telling how bullish the market is from here on out. Meanwhile, a downward correction to $52,000 could be sustained if the bulls fail to carry through. Still, a dip below $50,000 is not in sight.

Meanwhile, Investment analyst Robbie Liu points that retail investors are still active in the market, despite Bitcoin’s major dip from $60,000 to $50,000 in the past week. He also noted the expiration of a Bitcoin futures contract in June, which could influence Bitcoin’s next price movement.

According to him, “Last Friday, the premium of BTCUSD0625 jumped to 8% before quickly retracing. The premium is now back to 5% levels, indicating weak market expectations regarding the end of June price. However, since the expiration date is still far off, any increase in price could quickly drive up the premium.” 

He did not forget to add that $50,000 is a key level to watch. However, after the expiration of the $6 billion Bitcoin options today, Bitcoin will push to trade autonomously, he asserts.

“Retail investors have seemingly been trying to catch the bottom around the past two days while institutions generally want to de-risk. 50,000 USDT is now becoming a key level to watch. The current event-driven week is ending on a weak note with all the selling pressure stepping in after the Tesla announcement. However, with the massive options expiry out of the way, we could see BTC move more independently over the weekend.”

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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.