Why Bitcoin Looks Ready for Blast-Off

By Benzinga
Benzinga
Benzinga
February 11, 2022 Updated: February 11, 2022

Bitcoin was trading almost 3 percent higher on Thursday as it attempted to bust up through a resistance area at the $45,814.61 level.

The cryptocurrency market has been on an upswing in recent weeks after apex cryptos Bitcoin and Ethereum hit bottom on Jan. 24 at the $32,933.33 and $2,159 mark, respectively.

The current trend looks set to continue especially if Bitcoin can rise up over the $49,000 level where the 200-day simple moving average is currently trending. If the crypto can regain the level as support, the 50-day SMA will eventually cross above the 200-day, which would create a bullish golden cross.

The Bitcoin Chart

Bitcoin is trading in a confirmed uptrend with the most recent higher low printed on Feb. 3 near the $36,400 level and the most recent higher high forming on Thursday. Eventually, the crypto will need to print another higher low, which could provide traders not already in a position with a solid entry with a stop at the Feb. 3 low-of-day.

  • The higher low is likely to take place over the coming days because Bitcoin’s relative strength index (RSI) is registering at about the 69 percent level. When a stock or crypto’s RSI reaches or exceeds 70% it becomes overbought, which can be a sell signal for technical traders.
  • Traders and investors can watch for lower-than-average volume on the next lower high to feel confident the uptrend will remain intact.
  • Bitcoin has resistance above at $48,475 an $52,100 and support below at $42,233.66 and $39,600.

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By Melanie Schaffer

© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.

Benzinga