Bitcoin Rises to $50K, Next Resistance Around $52K-$55K

A decisive breakout above $50,000 could yield further upside toward the all-time high near $60,000, unless buyers start taking profits.

AccessTimeIconOct 5, 2021 at 10:43 a.m. UTC
Updated Oct 5, 2021 at 8:06 p.m. UTC

Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.

Bitcoin (BTC) is trading around $50,000 for the first time since early September as short-term momentum improves. The cryptocurrency has broken above a series of lower price highs last month and indicators suggest continued upside, initially toward the $52,000-$55,000 resistance range. (Resistance is the price at which the price of an asset meets pressure on its way up by the emergence of a growing number of sellers who wish to sell at that price.)

The sell-off last month was limited to the 100-day moving average around $40,000, which is also where a breakout occurred on Aug. 6. Buyers gathered strength as the price consolidated for several days, which preceded a fresh breakout above $46,000 last week.

  • The relative strength index (RSI) on the daily chart is not yet overbought, suggesting short-term buyers could remain active toward upper resistance levels.
  • A decisive breakout above $50,000 could yield further upside toward the all-time high near $60,000, although buyers could start to take profits ahead of that level, given the slowing momentum seen on the weekly chart.
  • For now, the intermediate-term trend is improving, with limited corrections and rising support levels.

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Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.

CoinDesk - Unknown

Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.

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