Daily Market Recap - Bitcoin Reaches All Time High Above 50,000 USD

Bitcoin, the world's largest cryptocurrency, has been booming since the end of 2020, with BTCUSD showing no signs of slowing down on the charts. However, the crypto has undergone minor corrections along the way, especially after setting historical highs one after the other. Here again, BTC seemed likely to experience a brief decline in the short term.

At the time of writing, Bitcoin was trading at $51,572, with the cryptocurrency having a market capitalization of approximately $96 billion. Over the past week, BTC has been trading within an upward channel, with a potential breach of the upper bound parallel channel in progress.

The price of Bitcoin has traded along with an upward channel formation over the past week. According to its price action mapped on the 4-hour chart, the crypto is likely to break out soon. In most cases, a breakout of this formation often leads to a slight price correction. BTC should find immediate support around the $50,000 price range. However, Bitcoin could fall to its second-lowest level since the beginning of the year at its next support level towards $47,581.

Resistance around its current all-time high has not discouraged the bulls out there over the last 24 hours but if BTCUSD fails to make a solid test at the 52,556 level it in the coming session, a new price discovery for the crypto asset could be postponed temporarily.

Bitcoin's market indicators are suggesting the possibility of a slight decrease in prices in the short term. The RSI is moving out of the overbought zone and approaching the neutral zone - pointing to a slight decline in buyer sentiment. The MACD indicator could soon see a bearish cross as the signal line continue to rise and it was getting closer to the falling MACD line.

(Chart Source: Tradingview 19.02.2021)

The Bitcoin market is experiencing strong upward momentum. We can expect the bullish run to resume in the long term. However, the crypto-currency is subject to price corrections. And it seems that BTC will have to withstand another one in the next 24 hours. This may push the price of Bitcoin to the level of 50,000 USD. A move below and the crypto will likely find strong support around 47,000 USD by extension.

Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.