- Bitcoin lifts above $50,000 since May while bulls shift attention to $60,000.
BTC’s technical picture remains bullish, suggesting that this is a bull cycle.
Bitcoin price continues with the recovery from $44,000 during the weekend session. As expected, settling above $48,000 triggered more gains as buyers looked forward to trading past $50,000. At the time of writing, Bitcoin is trading slightly above $50,000.
Bitcoin Must Secure Higher Support To Sustain Uptrend
The Moving Average Convergence Divergence (MACD) indicator has a bullish outlook based on the daily chart. This comes after a sell signal presented mid-last week was canceled. Currently, the 12-day exponential moving average (EMA) holds above the 26-day EMA, cementing the bullish influence in the market.
Intriguingly, Bitcoin is not overbought yet, according to the Relative Strength Index (RSI). This technical index tracks the trend of an asset and measures its strength. The RSI also highlights when an asset is either oversold or overbought. With the RSI brushing shoulders with 70, it means that bulls still have room to explore.
Higher support, preferably above $50,000, would be crucial for the uptrend’s sustainability. Currently, investors look toward $60,000, a move that analysts fear would lead to a double-top pattern. This technical pattern is highly bearish, and we could see Bitcoin trim a significant chunk of the accrued gains.
It is essential to realize that Bitcoin is currently facing extreme greed from investors. The Fear & Greed index holds at 79, pointing at FOMO (Fear of missing out). When investors are getting too greedy, the market is often closing in on a correction. Hence, it calls for caution when trading in the extremes of greed.
In the meantime, failure to hold support above $50,000 could result in a spike in overhead pressure. The following tentative support at $48,000 will mitigate the downtrend, thus giving bulls another shot at $50,000.
