- Summary:
- Bitcoin price has reached the crucial level of $50,000 for the first time since mid-May. It will likely ease around that zone in the near term.
Bitcoin price has surpassed the crucial level of $50,000 for the first time since mid-May. Notably, the cryptocurrency was on a downtrend for the better part of the year’s second quarter. After dropping from its all-time high (ATH) of close to $65,000 in mid-April, it declined to below $30,000 in late June to trade at a four-month low of $28,863.
Since mid-May, Bitcoin price has largely been trading between the psychological levels of $30,000 and $40,000. At the beginning of August, it broke the resistance at $40,000 and has since been trading steadily above that level.
According to CoinMarketCap, the leading cryptocurrency has had its market capitalization rise by 2.59% to $946.41 billion. However, its trading volume over the past 24 hours is down by 16.53% at $29.91 billion.
Bitcoin price technical outlook
BTC/USD has eased after hitting the psychological level of $50,000 earlier on Monday. At the time of writing, the crypto was up by 2.01% at 50,275.01. Notably, it is the first time that it has reached this crucial level since mid-May.
After dropping below the crucial support zone of 30,000 in late-July, it has since surged by about 72.09%. Nonetheless, it remains 22.33% lower than its record-high. On a two-hour chart, it is trading above the 25 and 50-day EMAs with an RSI of 69.
In the near term, I expect Bitcoin price to remain within the resistance zone of 50,000. The expected pullback may have it decline to along the 25-day EMA at 49,034.50 before rebounding. On the upside, it may rise to the prior resistance level of 51.697.52 before returning to the 50,000 zone. A move below the 50-day EMA at 48,324.81 will invalidate this thesis.
