The Bitcoin markets have immediately turned around on Friday to erase the losses from Thursday, since the markets of cryptocurrencies they continue to be a bit exaggerated. However, this is a bullish sign, and it looks like we are ready to go looking towards the $ 50,000 level, and based on technical analysis, it makes a lot of sense on several fronts.
A small bullish flag could be argued and it is honestly measured for a move above the 50-day EMA, but even before we had that shape, we had a previous bullish flag that sat right at the top of the area of Previous consolidation that sat between the $ 30,000 level and the $ 40,000 level. Because of this, the market was measuring for a move towards the $ 50,000 level as it was the $ 10,000 consolidation region. In equal conditions, Bitcoin is starting to pick up more inflows as we are looking at the possibility of inflation pushing crypto higher as well. The US Dollar has lost a bit of strength during the trading session. trading Friday, so that of course has had its say in this market as well.
If we have a pullback from here, the $ 40,000 level should offer quite a bit of support, building on the action above and of course the fact that the 50-day EMA is right there. On the other hand, if we turn around and break above the $ 50,000 level, then we will probably go looking for the $ 60,000 level, but there is a significant amount of resistance noise between here and there, so I consider that at best it would be a very hectic and difficult situation. Ultimately, it would take a big move to the upside to reestablish the $ 60,000 level, but that wouldn’t be something we haven’t seen happen here before.
Saving the market at the $ 30,000 level was crucial, because it then sends Bitcoin back on track to resume the general uptrend. With this being the case, it seems like it’s only a matter of time before we go even higher, so if you’re an investor, holding onto Bitcoin certainly works. However, if you are a highly leveraged trader, you need to see pullbacks to pick up some value.