Key Takeaways

  • Bitcoin’s price has risen by more than 5.50% in the past 12 hours, slicing through a crucial hurdle.
  • If buying pressure continues to rise, BTC’s market value could target a new record high of $61,000.
  • However, a particular technical index points to a retracement before Bitcoin reaches higher highs.

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Bitcoin is back in the green after turning a crucial resistance level into support. As long as Bitcoin’s price holds above $50,000, the cryptocurrency will likely advance to new all-time highs.

Bitcoin Attempts to Resume its Uptrend

Bitcoin seems to have broken out of an inverse head-and-shoulders pattern that has developed since Feb. 23 on its 4-hour chart. After slicing through the $52,000 resistance barrier, BTC surged by more than 5.50% to recently hit a high of $54,850.

Further spike in buying pressure around the current price level could push Bitcoin’s price up by 12% and towards $61,000. This target is determined by measuring the inverse head-and-shoulders’ widest range and adding that distance upward from the breakout point.

BTC/USD on TradingView

Although the odds seem to favor the bulls, the Tom Demark (TD) Sequential indicator suggests that Bitcoin could retrace. This technical index presented a sell signal in the form of a green nine candlestick on BTC’s 4-hour chart. Such a bearish formation tends to lead to a one to four 4-hour candlesticks correction.

If validated, Bitcoin may pull back to the inverse head-and-shoulders’ neckline at $52,000, then rebound to $61,000.

While a sudden downswing to the $52,000 support level may shake out some of the so-called “weak hands,” investors should understand that this is a massive area of interest.

Glassnode CTO Suggests Strong Support

Glassnode co-founder and CTO Rafael Schultze-Kraft maintains that more than 1.2 million BTC (roughly 6.5% of Bitcoin’s circulation supply) were transacted around $50,000, making this a “strong” support zone.

“When a large volume of coins move on-chain, and an on-chain support level holds, it suggests that there is significant accumulation interest and buyers see it as a ‘value’ entry point,” he says.

Bitcoin UTXO Realized Price Distribution by Glassnode
Bitcoin UTXO Realized Price Distribution by Glassnode

It is worth noting that while a rebound from the $52,000 support zone may lead to a 17% upswing, breaking through it could be catastrophic for the bulls. A 4-hour candlestick close below this price hurdle might generate panic among investors, igniting a sell-off.

Under such unique circumstances, Bitcoin may drop to $40,000 to look for support at that level.

Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.

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