Bitcoin breaks above $47k as bulls breach pivotal level

Bitcoin’s remarkable rally continues with prices currently above $47,000 after upside momentum helped bulls break above the critical resistance zone at $46,000.

The upside has seen Bitcoin’s weekly candle close above $46 for the first time since the last week of December 2021. The weekly close above $46,850 is also the first time the benchmark cryptocurrency has closed above the 21-week EMA since November. 

The last time bulls closed above the EMA in an uptrend was in July 2021, with prices testing highs of $53,000.

Marcus Sotiriou, an analyst at the UK-based digital asset broker GlobalBlock, said in a note that holding $46k might prove pivotal for Bitcoin’s short-term direction. 

He notes that the flagship cryptocurrency faces some headwinds after this burst. However, the market could see further bullish moves, given on-chain metrics such as long-term holder accumulation amid dwindling on-exchange reserves.

Another pointer is Crypto Fear and Greed, which shows readings hovering around 60, where it was when BTC traded around $60,000. According to him, buying pressure alluded to by the metric could push prices even higher.

If buyers are able to hold the $46,000 level as support, further moves on the upside are likely to include the next at $52,000.

Crypto trader and analyst Rekt Capital says a retreat is possible from current prices. However, the breakout has put Bitcoin back into the $43k-$52k range.

Bitcoin gains helped by fresh adoption

BTC’s surge of nearly 15% this past week and 7% in the past 24 hours comes after bulls finally broke above $42,500 last week. The rally has Bitcoin in positive territory over the month, currently about +20% in the past 30 days.

Most of the gains have come in the past few days, helped by positive sentiment around adoption. Russia’s signal of willingness to accept BTC for oil, Terra’s $1 billion purchase of Bitcoin for UST reserve, and US oil giant Exxon’s BTC mining operation all combined to add to what might be a short-term relief amid broader pricing in of macro headwinds.

At the time of writing, the BTC-USD pair is trading around $47,300 after retreating from overnight highs of $47,694 (on US-based crypto exchange Coinbase).

The post Bitcoin breaks above $47k as bulls breach pivotal level appeared first on Invezz.