Bitcoin on the Run Toward Psychological Threshold

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. 


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.  


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 

Disclaimer: Trive South Africa (Pty) Ltd (hereinafter referred to as “Trive SA”), with registration number 2005/011130/07, is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act, 37 of 2002. Trive SA is authorised and regulated by the South African Financial Sector Conduct Authority (FSCA) and holds FSP number 27231. Trive Financial Services Ltd (hereinafter referred to as “Trive MU”) holds an Investment Dealer (Full-Service Dealer, excluding Underwriting) Licence with licence number GB21026295 pursuant to section 29 of the Securities Act 2005, Rule 4 of the Securities Rules 2007, and the Financial Services Rules 2008. Trive MU is authorized and regulated by the Mauritius Financial Services Commission (FSC) and holds Global Business Licence number GB21026295 under Section 72(6) of the Financial Services Act. Trive SA and Trive MU are collectively known and referred to as “Trive Africa”.

Market and economic conditions are subject to sudden change which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. Trive Africa and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered. Please consider the risks involved before you trade or invest. All trades on the Trive Africa platform are subject to the legal terms and conditions to which you agree to be bound. Brand Logos are owned by the respective companies and not by Trive Africa. The use of a company’s brand logo does not represent an endorsement of Trive Africa by the company, nor an endorsement of the company by Trive Africa, nor does it necessarily imply any contractual relationship. Images are for illustrative purposes only and past performance is not necessarily an indication of future performance. No services are offered to stateless persons, persons under the age of 18 years, persons and/or residents of sanctioned countries or any other jurisdiction where the distribution of leveraged instruments is prohibited, and citizens of any state or country where it may be against the law of that country to trade with a South African and/or Mauritius based company and/or where the services are not made available by Trive Africa to hold an account with us. In any case, above all, it is your responsibility to avoid contravening any legislation in the country from where you are at the time.

CFDs and other margin products are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. See our full Risk Disclosure and Terms of Business for further details. Some or all of the services and products are not offered to citizens or residents of certain jurisdictions where international sanctions or local regulatory requirements restrict or prohibit them.