Bitcoin Must Regain This Key Level To Engage Rocket Launcher

Anthony Scaramucci, founder and CEO of SkyBridge Capital, told Cointelegraph Bitcoin BTC/USD could hit $100,000 by the end of this year. Back in May, when Bitcoin plummeted 46% across eight days following Tesla Inc’s TSLA decision to no longer accept the bitcoin as payment, ARK Invest CEO Cathie Wood said she expects Bitcoin to eventually reach $500,000.

If a trader had purchased $1,000 worth of Bitcoin when Wood gave her projection on May 19 when the apex cryptocurrency hit the $30,000 level, they would have made about a $346 profit as of Wednesday. If Bitcoin reaches $100,000 by the end of 2021, however, the trader could turn the original $1,000 into $3,333.

On Thursday, Bitcoin breached the important psychological resistance level of $50,000 but ran into a group of sellers and fell back down below the level. Bullish traders and investors will want to see Bitcoin regain the level in the near future if Bitcoin is to make its way toward a new all-time high.

See Also: How to Buy Bitcoin

The Bitcoin Chart: After a 12% move higher on Aug. 19 and Aug. 20, Bitcoin reached $50,505 and then fell into a period of consolidation. In its consolidation Bitcoin settled into a bullish falling channel pattern on the daily chart and on Wednesday, the crypto broke up bullishly from the pattern.

Bitcoin hit a high of $50.392 on the break higher but immediately sold off. Because Bitcoin also reached the approximate level on Aug. 23 but couldn't surpass it, the crypto will need to regain the $50,000 level in short order to negate a potential bearish double top pattern.

By noon Bitcoin had surpassed its average 10-day trading volume. When a crypto or stock has high volume, it indicates there is a high level of interest. For cryptocurrencies, this can often create higher than average volatility.

Bitcoin is trading above the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending above the 21-day, both of which are bullish indicators. Bitcoin tested the eight-day EMA as support on Wednesday and held above it. The crypto is trading above the 200-day simple moving average (SMA) which indicates overall sentiment is bullish.

• Bulls want to see sustained bullish volume pop Bitcoin back up above the $50,000 level and for bullish continuation to drive the coin back up toward a higher resistance level at $52,666. If the crypto can regain the level as support, it could move up toward the $55,400 mark.
• Bears want to see Bitcoin continue to reject $50,000 and for big bearish volume to come in and drop the crypto back into the falling channel pattern. If Bitcoin loses the upper descending trendline as support, it could trade within the channel until it loses support at $46,718, which aligns with the 200-day SMA.

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