Bitcoin (BTC) price extends gains for the second straight session on Tuesday. BTC has been rising along the ascending trend line, which is extending from the lows of $32,933.33. Investors gain confidence as the price found reliable support above the 50-day Simple Moving Average (SMA) at $41,784.42.
Bitcoin (BTC) price gained on Tuesday.
BTC has the potential to rally 40% if the price closes above $44,000.
A breakdown below the 50-day SMA at $41,784.16.
As of press time, BTC/USD is trading at $44,315, up 4.05% for the day. The live 24-hour trading volume stands at $24,465,361,287 with gains of 35% as per the CoinMarketCap.
The largest cryptocurrency by market cap faces an upside risk near the $46,000 resistance level while the downside is capped near the $35,000 and $40,000 that could stabilize the pullbacks over the short term.
Source: Trading view
On the daily chart, Bitcoin (BTC) has been trading inside the ‘rising wedge’ formation. The price recorded an ascent of 39% from January’s lows. Earlier, BTC’s price dropped 31% as it sliced through the $42,500 support level, flipping them into the current resistance barriers.
Now, to continue with the current bullish undercurrent investors need to clear the blockade that is placed near the $45,500 and accumulate the buy-stop liquidity resting above it. An acceptance above the 200-SMA (Simple Moving Average) could further aim the upside towards the $52,000.
On the flip side, investors would lose their patience if the price slips below the 50-day SMA that also coincides with the breaking of the lower trend line of the pattern. The interim support is placed at $40,000.
RSI: The Daily Relative Strength Index (RSI) trades at 60, which is an indication market is still far from overheating.
MACD: The Moving Average Convergence Divergence (MACD) comfortable reads above the midline with a bullish undercurrent.
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