Bitcoin (BTC) has risen steadily in recent weeks, reaching a new high of around $ 57,500 on February 20.
There was some positive news this week that it was the first public company in Germany to set aside its cash reserves in BTC, as well as launching the first Bitcoin ETF in Canada, which was trading more than $ 220 million at the time. for the first time.
This kind of news feeds bitcoin prices, while Elon Musk has also tapped into the latest laser eye meme, delighting many avid Bitcoin scammers at $ 100,000. However, the next significant point of interest is around $ 63,000 and this can be reached relatively soon if Bitcoin manages to stay above some key support levels.
Bitcoin continues to rise while maintaining critical levels
Bitcoin’s 4 hour chart is showing a distinct bullish trend as it broke out of construction territory between $ 30,000 and $ 42,000. Since then, key levels of $ 44,000 and $ 50,000 have been held in support, serving as a starting point for current peaks of over $ 55,000.
This race is also a result of reduced reserves in the stock market. This is very similar to the end of 2016, when more bitcoins were withdrawn from exchanges than deposits. These withdrawals mean that people will hold their bitcoins for the long term, indicating high demand and low terms.
During the recent rally, the first Fibonacci level 1.618 was reached. Bitcoin is now nearing a second point of interest at the 2618 Fibonacci level of about $ 63,000.
On the other hand, on the 4 hour chart, the $ 50,000 level is critical. If you maintain the support, there is a good chance that the Bitcoin price will reach this level next time. But if he loses $ 50,000, a bigger loss of up to $ 43,000 can be expected.
The total value of the cryptocurrency market reaches $ 1.7 trillion
Meanwhile, the total market value of cryptocurrencies in this cycle is approaching $ 2 trillion, which was not expected by many last year.
However, after breaking an all-time high in 2017, the next level of interest was $ 1.2 trillion, which is also the 1618 Fibonacci range.
This area has been broken and market capitalization is now targeting $ 1.85T, the Fibonacci level of 2618. The chart also shows a large gap between the 21-week moving average and the current price, indicating that the rally may be over its capacity.
Historically, the end of February and March were not optimistic for the market so the correction should not be surprising. In this case, the new test of $ 1.2 trillion is definitely on the table.
Important levels to know the bitcoin price
In trading, we are talking about having critical support levels for further acceleration or reversal. In this case, the first major level is between $ 43,000 and $ 44,000, and the second is $ 50,000.
However, the same can now be said of the $ 55,000 level on lower timeframes, especially on the light hourly chart. If lost, there will be a gap in the next support area, which means a collapse to the $ 50,000 level can be expected.
However, as long as $ 55,000 is held, there is nothing stopping Bitcoin’s price from reaching the next Fibonacci level of $ 63,000.