Bitcoin’s (BTC) price has so far failed to make new all-time highs above $60,000 this week. After the breakout above $58,000, negative news from India along with general macroeconomic weakness and rebounding U.S. dollar appear to have halted the rally.
This resulted in a pullback toward $53,000 on March 16. Such a move is normal, as bull markets typically move in waves. In other words, the market will find a new equilibrium of buyers and sellers, after which it will decide where to go next.
Overall, the market has been in a significant uptrend, as Bitcoin’s price has accelerated from $11,000 to $60,000 in just six months.
Bitcoin fails to break $60,000
BTC/USD 4-hour chart. Source: TradingView
The four-hour chart shows apparent support at $53,000, which held once again. The subsequent continuation upward is seen on the four-hour chart of Bitcoin.
This upward continuation then met the next big resistance at $58,800 to $60,000. This is the final key resistance level before the next impulse wave toward $68,000 can happen.
However, Bitcoin’s price couldn’t break through this resistance zone yesterday, which has pushed it back toward its previous range. The top of this range is $58,800 to $60,000, while the bottom support area is at $54,000 to $55,000 and $53,000.
The pressure will likely see a build-up resulting in a breakout to the upside as long as Bitcoin’s price stays inside this range.
BTC/USD remain bullish on the daily time frame
BTC/USDT 1-day chart. Source: TradingView
The daily chart for BTC/USD shows a strong uptrend, which has been the case for six months. This has been confirmed through higher lows and higher highs. As the recent low was created at $42,000, any price above this level means that the bull market is not in danger.
On the other hand, the relative strength indicator (RSI) shows a bearish divergence, albeit still invalid. The bearish divergence becomes valid once previous resistance zones turn into resistances once again, and more importantly, once the price of Bitcoin starts to make lower lows.
Hence, the $50,000 region is a crucial area to watch as that should become the new higher low region. However, even if $50,000 is lost, the final anchor of support can be found at $42,000 and the 21-Week MA.
As long as these regions hold, the uptrend should continue. This should bring Bitcoin’s price to $68,000, as that’s the next Fibonacci level to watch.
Total crypto market cap eyes $2 trillion
Total crypto market capitalization 1-day chart. Source: TradingView
The daily chart for the total cryptocurrency market capitalization shows a similar structure to Bitcoin’s price.
In this regard, the crucial support to hold is the $1.5 trillion level. As long as it holds, continuation toward $2 trillion is very likely. The next Fibonacci level is found between $2 trillion and $2.1 trillion, or almost three times higher than the previous all-time high in 2017.
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