For more than a week now, Bitcoin continues to suffer the major rejection at around $50k. This rejection resulted in an elongated stay below $50,000 and an extended market capitalization for the bears.
The consolidation, as well as Bitcoin’s tendency to underperform in March, has cast doubts over the possibilities of seeing a $50k per unit BTC real soon. However, bitcoin continues to show a sign of intent to restart the bull market in earnest.
In the early hours of today, BTC got as high as $50,250 and even higher on some exchanges. The move was welcomed by the bears who capitalized on it to bring prices crashing down to $47k per unit.
In the meantime, bitcoin will likely continue to trade within the $50,000 and $45,000 zone until a major breakout to the top or below. A breakout to the top is more likely, though since the market will possibly see a new bitcoin uptrend this March before any bearish reversal.
A glimpse of what will happen this month is what the market saw this morning and a retest of waters above $50,000 could see the bulls ultimately seize control once more.
At the time of writing, though, Bitcoin is recovering from a dip it suffered after facing rejection at $50,250.
For the days ahead
Traders must defend the $47,000 support in preparation for the test above $50,000. Failure to defend the $47,000 support will result in a dip below it or worse.
After testing and breaking the $50k resistance, bulls will need to overcome the $52,000 resistance to confirm a foothold on the $50k region, and possibly en-route to a new all-time high
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Author: Gideon Geoffrey