Things might be moving around for the whole industry as many assets which were in the red zones are recording new gains. Like many assets, Bitcoin is yet to retake its all-time high, but the new signs of recovery show that the upward movement is unavoidable. Bitcoin moved around above the $49,000 yesterday but is now around $48,000 at the time of writing.
The new gains might be due to market bulls gaining some market dominance against the bears. The first coin is now close to the $50,000 mark and might soon take that position if the market participants are determined to have an uptrend. The asset declined from its peak, $58,000, and has been showing high volatility within the past few days, showing market indecisiveness.
Bitcoin moves towards its Moving averages
The benchmark coin is finally trading towards the 9-day and 21-day moving average ever since it declined from its all-time peak. The asset’s notable resistance level is around $54,000, $56,000 and $58,000. On the flip side, the support level is around $40,000, $38,000 and $36,000.
Many factors caused last week’s continuous fall, while most people attributed it to the uncontrollable selling pressure. Selling activities have reduced because buyers want to gain more on their holders, leading to the holding of the assets. The scarcity could have helped the crypto gain notable values within a short while.
The bulls were not active last week, leading to continued price corrections without a stronghold to drive prices up. But as this week begins, the participators are back in the market, regaining their dominance. The asset now has about a 7% increase, with the value being around $48,000 after a slight correction from $49,000 on Monday.
The asset had lost value drastically throughout last week, with charts showing around 25% of lost value. The crypto even touched the $43,000 mark before taking the $49,000 position.
RSI (14) shows a growing bullish trend
The analysis shows that Bitcoin would likely move above its moving averages in the nearest future. Asides from having gained 7%, the RSI (14) has moved around the 50-level, showing that the asset is welcoming a bullish rally. The bulls have to regain some boundaries to help them take the asset to the nearest price level, which is around $52,000.
Traders should understand that if a fall occurs beneath the lower boundaries, it could mean more losses for Bitcoin. Bitcoin being the benchmark coin significantly affects market situations and could easily take all digital assets back to the red zone.
Charts show that Bitcoin might not be strong enough to take price points above the $49,000 level as the crypto had corrected drastically when it attempted the uptrend last week. Bitcoin is gathering strength to help it move to the next significant level. If the asset moves above the 9-day and 21-day MA, the first resistance might be $54,000 and above.
While the support level also begins from around $40,000. The asset needs to continue on the present path to get the market bulls to take it to the next resistance point as it tries to retake $58,000.