Bitcoin broke through $50,000 to start the week and although a stubbornly high inflation reading has pulled it lower since, the cryptocurrency is still in safe territory, according to chart analysts. On Monday, the cryptocurrency finished above $50,000 – at one point rising to $50,334.00, its highest level since December 2021. Technical analysts had expected this breakthrough last month , when bitcoin kicked off the new year with a rally that seemed to be heading toward $48,000. It’s retesting that level now, however, and it was due for the slight pullback, according to Wolfe Research’s Rob Ginsberg. “We were looking for it to work lower into the $39,000 to $40,000 range and become oversold, before playing for a bounce,” Ginsberg told CNBC Tuesday. “It tested that level back in late January and the oversold signal developed, which has provided a powerful reaction,” he added. “Now back to overbought, I would expect it to digest this recent move and back fill a bit into the $47,000 range. [It’s] still shaping up to challenge the old highs at some point.” BTC.CM= YTD mountain Bitcoin year-to-date Other chart analysts echoed that investors need not be too concerned about a significant decline from here. For one, $50,000 as a level holds little significance technically. “$50,000 in itself is not really an important level, other then being a nice rounded psychological number,” said Julius de Kempenaer, senior technical analyst at StockCharts.com. “The important breaking level was around $48,000. That is where the peaks from March 2022 and January 2024 were lining up and where additional supply showed up briefly before it got exhausted.” With bitcoin still above $46,000, its upward trend is still intact. The coin also has key catalysts like increasing inflows into the newly trading bitcoin ETFs and upcoming Bitcoin halving to help push it higher. “If and when bitcoin can hold up above the $46,000 to $48,000 area in the next few days, it will be setting the stage for a further rally,” De Kempenaer said. “Old resistance becomes support and that $46,000 to $48,000 can then become the jumping board for a continuation of the rally.” He added that he’s eyeing $60,000 as the next level higher to watch – that was the key resistance in the second quarter of 2021, before bitcoin hit an initial record of about $64,900 in April of that year. Seven months later, it reached its current record of $68,982.20 on Nov. 10, 2021. Katie Stockton of Fairlead Strategies agreed the bitcoin chart supports “a long-term bullish bias.” She’s looking for consecutive weekly closes above $48,600, where the cryptocurrency stalled in January. If bitcoin can do that, it’ll be on track for its next hurdle near $56,400, with its final resistance at about $64,900 before reaching new all-time highs, she said in a note Monday. “Both short and intermediate-term momentum are positive and reaccelerating, and there are no signs of upside exhaustion, suggesting a confirmed breakout is likely,” Stockton said. Bitcoin is up 15% this year and 127% over the past 12 months.
Here’s what bitcoin’s chart says about its next moves after it breached $50,000 this week
