Two weeks ago Bitcoin entered into the overbought territory in technical analysis, however, a strong demand during the week pushed the prices of BTC to the higher grounds, instead into a correction path. Bitcoin gained around 10% on a weekly level, supported by both availability of exposure through exchange traded funds, but also relatively negative inflation data posted for the US, at least as perceived by investors. It should be also noted that BTC`s cross above the $50K resistance line activated the so-called “Bitcoin whales' ' whose significant activity was reported by the analytics firm Santiment. They also reported that during the previous week, there has been the highest number of transactions above $100K, when such transactions exceeded a total of $ 5B in value. Certainly, the break of the $50K resistance represents the important milestone for this year for BTC, as it opens the path for higher grounds in the future period. It should also be mentioned developments on the BTC futures market, where the price of futures maturing in December 2025 reached the level of $59.425 at Friday's closing on the CME.
BTC started the previous week around level of short term resistance at $ 48K, however, swiftly moved to the higher grounds, breaking the $50K next resistance line. The price stopped at its highest weekly level at $52.690, but the next resistance line at $53K has not been clearly tested on this occasion. The RSI moves within the highly overbought territory for the last two weeks. Moving average of 50 days continues to diverge from MA200, not indicating that a potential cross is anywhere near. During Saturday`s trading session, the price of BTC reverted to the downside, heading toward the support line at $50K.
As Saturday`s trading brought a sort of short term price reversal, it could be expected that the BTC will start the week ahead by testing the support line at $50K. As long as demand for this coin remains too strong, it should not be expected that the coin will break the $50K line to the down side. Just in case that this happens, then the price will head back toward the $ 48K a short term stop. On the opposite side, the resistance at $53K has not been clearly tested during the previous week, which leaves some space for the market to test it in the week ahead. Whether there will be strength for this line to be broken for the higher grounds, is hard to say at this moment, as the latest move was influenced by strong funds inflow into the crypto market, which is out of the range of the technical analysis.
BTC started the previous week around level of short term resistance at $ 48K, however, swiftly moved to the higher grounds, breaking the $50K next resistance line. The price stopped at its highest weekly level at $52.690, but the next resistance line at $53K has not been clearly tested on this occasion. The RSI moves within the highly overbought territory for the last two weeks. Moving average of 50 days continues to diverge from MA200, not indicating that a potential cross is anywhere near. During Saturday`s trading session, the price of BTC reverted to the downside, heading toward the support line at $50K.
As Saturday`s trading brought a sort of short term price reversal, it could be expected that the BTC will start the week ahead by testing the support line at $50K. As long as demand for this coin remains too strong, it should not be expected that the coin will break the $50K line to the down side. Just in case that this happens, then the price will head back toward the $ 48K a short term stop. On the opposite side, the resistance at $53K has not been clearly tested during the previous week, which leaves some space for the market to test it in the week ahead. Whether there will be strength for this line to be broken for the higher grounds, is hard to say at this moment, as the latest move was influenced by strong funds inflow into the crypto market, which is out of the range of the technical analysis.
