The Bitcoin spot price (BTCUSD) has once again seized the spotlight, riding a triumphant 7-day winning streak that propelled it beyond the $48,000 mark. This latest surge, boasting a remarkable 13% gain over the past week, stands as the most substantial weekly leap since October of the previous year.
At the heart of this surge lies the resounding success of recently introduced US ETFs for Bitcoin. Initially met with scepticism, these ETFs, unveiled on January 11th, have attracted a staggering $9 billion in investor capital, signalling a notable shift in sentiment. With attention now fixated on the psychological barrier of $50,000, investors are eagerly speculating whether the current surge possesses the momentum to breach this pivotal threshold.
Technical
The daily chart shows the uptrend triggered by a falling wedge breakout, which pushed the price above the 25-SMA (green line) and 50-SMA (blue line). However, with the RSI in overbought conditions and the 50-SMA remaining above the 25-SMA, there is enough technical evidence to keep the bears in play for a pullback.
If the momentum turns via a breakdown at the $48,221 level, the price could look for support at $47,202 and $45,959 in the upcoming week. If buyers are not found here, the breakdown could be sustained to retrace the recent uptrend, with the Fibonacci midpoint at $43,697 acting as a strong point of support, backed by the 25-SMA and 50-SMA not far below. If the selling momentum is strong enough to breach this level, the 61.8% Fibonacci golden ratio could be a likely destination at $42,483.
However, if support at $48,221 holds steady in the upcoming session, the bullish momentum could be sustained in the current uptrend. Resistance near the psychological $50,000 level could then come under the spotlight before higher resistance at $50,582 could enter the conversation.
Summary
Bitcoin has ramped up seven consecutive days of gains over the last week, triggering a 13% surge in its price above the $48,000 threshold. While there are indications of a potential pullback, support at $48,221 could be pivotal in the upcoming sessions to determine whether the uptrend will be sustained.
Sources: Koyfin, Tradingview
Piece written by Tiaan van Aswegen, Trive Financial Market Analyst
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