Bitcoin price must stay above these levels to break above $ 60,000
It is important that the price of Bitcoin stays above $ 50,000 for it to continue to rise
The price of Bitcoin (BTC) has been climbing steadily in recent weeks, reaching its latest new high of around $ 57,500 on February 20.
There has been more bullish news this week, such as the first publicly traded company in Germany moving its cash reserves to BTC, as well as the launch of the first Bitcoin ETF in Canada, whose trading has exceeded $ 220 million in its debut.
News like that is driving the price of Bitcoin, while Elon Musk has also embraced the latest “laser eye” meme to the delight of hodlers hoping for a Bitcoin price of $ 100,000. However, the next major point of interest is around $ 63,000, and it could be reached relatively soon if Bitcoin can sustain itself above some key support levels.
Bitcoin Price Keeps Rising As It Maintains Critical Levels
Bitcoin’s four-hour chart shows a clear bullish trajectory since it broke the construction of the range between $ 30,000 and $ 42,000. Since then, the crucial levels of $ 44,000 and $ 50,000 held as support, serving as a launch pad for the current highs above $ 55,000.
This rally is also being driven by declining reserves on exchanges. This is very similar to what was observed at the end of 2016, when the total of Bitcoin withdrawals from exchanges exceeded the amount that was deposited. These withdrawals indicate that people want to hold their Bitcoin for the long term, showing strong demand and low time preference.
During the recent rally, the first Fibonacci level was reached at 1.618. Now, Bitcoin is approaching the second point of interest at the Fibonacci level of 2,618 around $ 63,000.
On the downside, the $ 50,000 level is crucial on the four-hour chart. If it holds support, there is a high probability that the price of Bitcoin will hit that level next. However, if you lose $ 50,000, further drops can be expected to $ 43,000.
Total cryptocurrency market capitalization reaches $ 1.7 trillion
Meanwhile, total cryptocurrency market capitalization is approaching the $ 2 trillion mark in this cycle, something many would not have expected last year.
However, after breaking the all-time high of 2017, the next interest level was the $ 1.2 trillion level, which is also the 1.618 Fibonacci zone.
That zone was broken to the upside, and the market cap is now targeting $ 1.85 trillion, the Fibonacci level of 2.618. The chart also shows a huge gap between the 21-week MA and the current price, suggesting that the rally could be spreading too far.
Historically, the end of February and the month of March have not been bullish for the market, so a correction should not come as a surprise. In that case, a new test of $ 1.2 trillion is definitely on the table.
Crucial levels to watch for BTC price
In trading, it’s all about maintaining critical support levels to keep going up or down. In this case, the first key levels are between $ 43,000 and $ 44,000 and the second at $ 50,000.
However, the same can now also be said for the $ 55,000 level on lower time frames, specifically on the 1-hour candlestick chart. If it loses, there is a gap to the next support zone, which means that a break to the downside can be expected, down to the $ 50,000 level.
However, as long as $ 55,000 holds, there is not much stopping Bitcoin’s price from reaching the next Fibonacci level at $ 63,000.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.