Bitcoin (Bitcoin) After a sharp rise of 70% since the recent low of $28,000 in July, it is currently facing key resistance to break through. This resistance is located in the psychological zone between $50,000 and $51,000 and can be classified as the last obstacle before the all-time high.
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Since the recent bottom of $28,000, the market has not seen any correction, and there may be a potential correction at that time.
Bitcoin breaks through $51,000 and faces key resistance
Bitcoin’s daily chart shows that clear resistance is emerging. The $51,000 level is critical for the market breakout because it was a significant S/R rollover before the severe crash in May.
If the market cannot exceed this level, the entire market may adjust. However, this is not surprising, as the altcoin market is showing signs of overheating.
In addition to this, the chart shows that a potential bearish divergence may be opening up. This bearish divergence usually precedes the correction.
Considering the importance of the $51,000 level, this area is the last hurdle before a possible sharp rise to historical highs. If the resistance level of 51,000 USD is broken, there may be a short squeeze to 57,000-59,000 USD. However, given the recent adjustments, further adjustments are likely to occur.
The key level for observing potential collapse is the entire region, which is approximately $44,000. This level marks a new higher low in the current structure, and if further and broader adjustments occur, it is most likely to support the market.
In addition to the $44,000 level, the next support level can be found near the $40,500 level because this is the previous high. Overall, the market should not fall below $37,500, as this is the last breach before a new low. For now, rejection at the resistance level of $51,000 may open the door for more people to do it.
Total market value encryption faces an important level
Since the recent low of US$1.2 trillion, the total market value of cryptocurrencies has shown tremendous growth. Since then, the market has soared by more than 70%, reaching a high of $2.1 trillion.
The recent high of $2.1 trillion is the ultimate resistance before the market breaks through the upside. In addition, potential bearish divergence has also begun to appear on the chart, requiring a possible short-term reversal.
According to the current chart, the following support level in this area is approximately $1.75 trillion, as this is the most recent compression zone. In addition, this is also a recent high.
Such a high price may mark the establishment of a potential new range. If the level of around US$1.75 trillion is not supported, the possibility of a further correction to US$1.55 trillion still exists.
However, if it clearly breaks above US$2.1 trillion, the entire correction will be invalidated. If such a breakthrough occurs, the market is likely to continue to hit a record high of more than US$2.5 trillion.
Provided $48,000 in key support for Bitcoin in a short time frame
Bitcoin’s 2-hour chart shows the key level to maintain the market’s continued upward trajectory. If the $48,000 area is not supported, the price of Bitcoin will fall back to the previous range.
The previous range has sufficient support in the $44,000 area, which is likely to create the next support area for the entire correction. Nothing is certain, but when Bitcoin loses $48,000, it may trigger a series of stop/loss triggers, which may lead to a drop to $44,000.
Of course, this may harm the altcoin market. However, traders and investors should understand that the market will rise in waves. In an uptrend cycle, especially in the big cycle we have seen recently, a correction is expected before a new impulse trend occurs.
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