Bitcoin price has broken out from two short-term resistance levels and is gradually moving towards $51,000

Bitcoin price traded sideways yesterday, pausing an 11% price jump over the past week. The largest cryptocurrency by market capitalization was recently holding steady at about $47,250, slightly down over the last 24 hours. At the time of writing, BTC is changing hands at $47,460.

bitcoin price

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price appears to be overbought, although pullbacks could be brief

BTC has been increasing inside an ascending parallel channel since Jan 24. It bounced at its support line on March 14, and the price rose. So far, BTC reached a high of $48,189 on March 28.

The six-hour chart shows that BTC has broken out from a descending resistance line that has been in place since Feb 8. This suggests that the previous correction has ended, and an upward movement has begun.

Furthermore, the two-hour chart shows that BTC has broken out from an ascending parallel channel and validated it as support afterward. Therefore, it indicates that the short-term trend is bullish. The most likely wave count suggests that BTC is in wave C of an A-B-C structure. The movement was validated once BTC broke out from a symmetrical triangle on March 23.

A high of $50,700 would give waves A:C a 1:1 ratio. It would also be close to the previously outlined $51,000 resistance area. The sub-wave count is given in white, suggesting that the price is either sub-wave four or has just begun sub-wave five.

“Bitcoin’s whales have been active today. The 3,266 100k+ transactions between 2 pm and 6 pm UTC were the most in a 4-hour interval since March 1st. Market prices peaked at just above $48.0k 8 hours ago, and they’ve now come down just slightly to $47.3k”, Santiment reported.

bitcoin-price-has-broken-out-from-two-short-term-resistance-levels-and-is-gradually-moving-towards-51000

Source: Santiment

Ether was also treading water at about the same $3,350 mark it held a day earlier. Other significant cryptos were mainly in the red, with DOGE and SHIB registering two of the most significant declines during specific points of the U.S. trading day at more than 6% each, respectively. Late in the day, Axie Infinity (AXS) had fallen 9%, while Cardano (ADA) was off over 3.5%.

The declines came after seven consecutive days of mainly increases among major cryptos, which market analysts have struggled to explain. However, many have highlighted rising interest among institutional investors, including announcements by financial services powerhouses Goldman Sachs (GS) and BlackRock (BLK). The purchase over the past six days of $1.3 billion in bitcoin by the Singapore non-profit Luna Foundation Guard (LFG) as a reserve asset for UST, which is Terra’s decentralized dollar-pegged stablecoin, and commitment to buy at least $1.7 billion more in BTC, further buoyed markets earlier this week. Terra (LUNA) reached an all-time high of over $109 on Tuesday.

 

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