On Monday, the bitcoin price held support at the 50-day SMA, which helped the bulls regain control of the market and take profits above $55,000. A daily close above $50,000 could confirm the uptrend to $55,000, but we should expect delays in the $52,000 to $5Z,000 range. For the first time since September 6, bitcoin is on the verge of breaking above $50,000. At the very beginning of the week, the largest cryptocurrency by market capitalization managed to break through the supply zone of about $ 48,000.
At the time of writing, BTC was trading at $ 49,600 with a daily gain of 4%. The technical picture on the daily chart shows the exit of bitcoin from the short-term model of the descending wedge. This is a bullish formation that often leads to a significant upward movement.
When confirmed, the falling wedge determines entry and exit positions, allowing traders to make informed decisions. Typically, an asset will begin a bullish run once this pattern is confirmed. Bitcoin bulls currently have one goal: to break the nearest $50,000 barrier. As soon as that hurdle is cleared, attention will shift to $55,000. However, traders should keep in mind the accumulation of sellers between $52,000 and $5,000, which is a critical stumbling block.
Based on the technical indicators used, such as the divergent moving average convergence (MACD) and the relative strength index (RSI), the nearest resistance path is pointing upward. The former recently sent a signal for traders and investors to buy BTC, and as it crosses the midline, the chances of a sustained uptrend increase significantly.
The RSI supports the optimistic outlook as it moves to close the overbought area gap. Its continuous movement from the September Z5 lows reinforces the growing bullish influence in the market. Consequently, if the general technical picture remains unchanged in the forthcoming sessions, we can expect a breakthrough to $52,000, if not to $55,000. In any case, buyers should close the day above $50,000