Bitcoin, Around $51K, Nears Upper Bound of 3-Year Price Trend

Upward-sloping price channel starting in late 2017 on weekly chart shows near-term resistance around $60,000.

Mar 8, 2021 at 5:37 p.m. UTC
Updated Sep 14, 2021 at 12:22 p.m. UTC

Bitcoin's bull run over the past year may be showing signs of exhaustion as it pushes toward the upper bound of a three-year price channel, an analysis of chart patterns shows.

The largest cryptocurrency by market value was changing hands around $51,000 as of 16:41 coordinated universal time (11:41 a.m. ET). Bitcoin (BTC) is up 75% for the year to date.

  • Upward price channel from 2017's high shows possible resistance for BTC around $60,000, which could cap upside.
  • A flattening of the 50-week volume weighted moving average (VWMA) would indicate a slowing long-term uptrend, similar to 2018. For now, that 50-week VWMA is climbing, currently around $22,000.
  • Traders should watch for a break below the 50-day volume weighted moving average to confirm a shift in trend.

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