It’s critical for Bitcoin to hold more than $50,000 upside down.
Bitcoin’s (BTC) price has been steadily rallying over the past few weeks, hitting its current new peak of about $57,500 on Feb. 20.
The week saw more lively news, such as the first German-listed company to allocate its cash reserves to BTC, as well as the introduction of the first Bitcoin ETF in Canada to exchange more than $220 million in its debut.
Just for a day
— Elon Musk (@elonmusk) February 19, 2021
Such news is fuelling the price of Bitcoin, while Elon Musk has also embraced the current “laser eye” meme to the delight of the hodlers who are itching for a $100,000 BTC price. However, the next big point of interest is about $63,000, and this could be achieved reasonably quickly if Bitcoin could hold up to a few key support thresholds.
Bitcoin continues rally by holding critical levels
The four-hour Bitcoin chart indicates a strong upward direction after the creation of the range broke out between $30,000 and $42,000. Since then, critical levels at $44,000 and $50,000 have been kept as support, which has acted as a launch pad for current highs above $55,000.
This run is also motivated by declining exchange reserves. This is somewhat close to the end of 2016 when more Bitcoin was removed from the exchanges than was deposited. These withdrawals indicate that people want to keep their bitcoin for the long term, suggesting high demand and low time choice.
The first Fibonacci amount was reached at 1,618 during the recent rally. Now, Bitcoin is nearing the second point of interest at the 2.618 Fibonacci stage of around $63,000.
On the downside, the $50,000 mark is critical to the four-hour map. If that supports funding, there is a high probability that the price of Bitcoin will next hit that level. However, if $50,000 is lost, a further drawback of $43,000 can be expected.
Total crypto market cap reaches $1.7 trillion
Meanwhile, total cryptocurrency market capitalisation is reaching the $2-trillion mark in this cycle, which many people haven’t predicted in the past year.
However, after breaking the all-time high of 2017, the next amount of interest was $1.2-trillion, which is also the 1.618 Fibonacci area.
The region was split up, and the market cap now stands at $1.85 trillion, the Fibonacci amount of 2,618. The chart also shows a massive gap between the 21-week MA and the current price, indicating that the rally may be overextended.
Historically, the market was not bullish at the end of February and the month of March, so the correction did not come as a surprise. In that scenario, a $1.2 trillion retest is certainly on the table.
Crucial levels to watch for BTC price
In trading, it’s all about keeping vital support levels upwards or downwards. In this scenario, the first key levels are between $43,000 and $44,000, and the second key level is $50,000.
The same, however, can now also be said about the $55,000 level on low timeframes, specifically the 1-hour candle map. If this is missed, there is a difference to the next field of funding, which means that a breakdown to the $50,000 level can then be expected.
However, as long as $55,000 is kept, there isn’t anything that keeps Bitcoin’s price from hitting the next level of Fibonacci at $63,000.
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