Analyzing Bitcoin's Chart: Insights into its Next Moves Following the $50,000 Breakthrough

Bitcoin Reaches $50,000 but Pulls Back

Bitcoin broke through the $50,000 mark at the start of the week, reaching its highest level since December 2021. Despite a recent pullback due to high inflation figures, chart analysts believe that the cryptocurrency is still in a safe position. Technical analysts had predicted this breakthrough in January when bitcoin rallied towards $48,000. However, it is currently retesting that level and experiencing a slight pullback. According to Rob Ginsberg from Wolfe Research, this pullback was expected and provides an opportunity for a bounce. Although some investors may be concerned about a significant decline, analysts argue that bitcoin’s upward trend is still intact.

$50,000 Holds Little Significance Technically

Chart analysts explain that $50,000 is not a crucial level for bitcoin and only serves as a psychological milestone. The important breaking level was around $48,000, where previous peaks aligned and additional supply briefly appeared. As long as bitcoin remains above $46,000, its upward trend remains intact. Furthermore, increasing inflows into bitcoin exchange-traded funds and an upcoming halving event are expected to contribute to further price increases. Analysts suggest that if bitcoin can hold above the $46,000 to $48,000 range, it will set the stage for a continuation of the rally.

Bitcoin’s Next Targets and Momentum

Analysts have identified potential levels for bitcoin’s next targets. Julius de Kempenaer from StockCharts.com highlights $60,000 as the next level to watch. This was a key resistance in 2021 before bitcoin reached its initial record high of around $64,900. Katie Stockton of Fairlead Strategies also supports a long-term bullish bias for bitcoin and looks for consecutive weekly closes above $48,600. If bitcoin achieves this, it could reach its next hurdle near $56,400 and potentially surpass its previous all-time high of $64,900. Both short and intermediate-term momentum for bitcoin is positive, suggesting a confirmed breakout is likely.