BTC draws closer to $50,000 as breakout to $60,000 lingers

• Bitcoin is on the path to breaking above $50,000 as technical remains bullish.
  The uptrend is likely to be validated by the MACD on the 4-hour chart.
  Failure to break the ascending channel’s middle resistance could see BTC drop to $46,000.
  
  

Bitcoin is trading slightly above $49,000 after recovery from the recent dip to $46,000. Over the weekend, the flagship cryptocurrency closed in on $50,000 but failed to swing above the critical level. The bull cycle is still intact, and a break above $50,000 will mark its next phase to price levels around $60,000.

The 4-hour chart shows Bitcoin trading within an ascending parallel channel. Marginally below the prevailing price action, BTC rests on the 50 Simple Moving Average Support (SMA). Holding above this moving average has been very instrumental in preventing the pioneer cryptocurrency from dropping further.

Simultaneously, the support allows the bulls to focus on higher price levels. For now, the least resistance path is upwards. Besides, the bullish outlook is likely to become more vivid if the Bitcoin steps above the ascending parallel channel’s middle boundary. Continued price action above $50,000 will leave bulls with open-air to explore towards $60,000.

Traders must pay close attention to the Moving Average Convergence Divergence (MACD). Currently, the trend tracker and momentum indicator has settled above the midline, suggesting that Bitcoin is in the hands of the bulls. However, if the MACD line (blue) crosses above the signal line, BTC’s much-anticipated uplift past $50,000 will be confirmed.

On the other hand, Bitcoin may fail or delay the breakout if bulls cannot break above the channel’s middle hurdle. Selling pressure would increase as bulls get exhausted. A break under the 50 SMA will open the door to losses heading towards $46,000 and $44,000, respectively.

Bitcoin intraday levels

Spot rate: $49,445

Relative change: 1,550

Percentage change: 3%

Trend: Bullish

Volatility: Growing