Bitcoin Performs Breakout!
Bitcoin surges past $40,000, eyeing $48,000. Key supports at $40,000, $32,000, with the 200 SMA indicating market trends.
On Monday, December 4th, Bitcoin (BTC) made a remarkable move, surging beyond the $40,000 mark and registering a substantial 5% gain within a single day. The burning question now is whether this upward momentum will persist and, if so, for how long? Conversely, could the market encounter a downturn, and if it does, what might be the potential extent of the decline? Let's delve into the details to uncover the possibilities!
Chart by TradingView
Should Bitcoin maintain its current upward trajectory, its sights may be set on the next significant resistance level, approximately $48,000. This level represents an ascent of more than 15% from the present price point. Furthermore, if the price successfully breaches this threshold, it would bring the coveted All-Time High of $69,000 within reach, serving as the subsequent resistance to conquer.
Considering the Downside
Conversely, in the event that BTC loses its bullish momentum and undergoes a corrective phase, there's a pivotal support at $40,000. Should this level falter to uphold its support role, the $32,000 level stands as the subsequent critical support zone to watch.
Adding to this, the daily 200 Simple Moving Average (SMA) assumes a mobile support role in this price journey. When BTC maintains a position above the 200 SMA, this moving average functions as a supportive foundation. Conversely, when the price descends below it, the 200 SMA transforms into a formidable resistance.
Historically, breaking above the 200 SMA has signified a tendency for the price to sustain such a position for a protracted period. Notably, during the 2020 bull run, the price remained above the 200 SMA for longer than a year.
Bottom Line: Bitcoin's recent breakout above $40,000 is generating optimism. It may target $48,000 and even approach the All-Time high of $69,000 if the uptrend persists. On the downside, $40,000 and $32,000 serve as key support levels. The daily 200 SMA, a critical indicator, could signal an extended bullish trend akin to the 2020 bull run.
