- Bitcoin is approaching a key resistance zone of $53,000
- It’s reaction to this zone will be telling with regard to its short term future
- If it doesn’t cross $53,000 it needs to hold above $45,000
Bitcoin is approaching two key resistance areas as it looks to bounce back from the almost month-long correction that has seen it drop some $27,000. Here we outline key areas Bitcoin holders should be looking at in the coming days.
$53,000 is Key Point for Bitcoin
Having flushed down to just above the key $37,000-$40,000 support range, Bitcoin has since bounced up to $51,500, with all eyes on what it does now. Above it is significant resistance in the $53,000 area, which it is highly unlikely to cross first time:
If it does reject as suspected, then it is important to note where it rejects too. A likely candidate is the $48,500 region, which would represent a higher low to match the higher high off the bottom and would give a good platform to try and crack $53,000 again:
What Bitcoin holders don’t want to see is a fall and close below $45,000, as this would represent a real lack of belief and suggest that further recovery time is needed before prices can rise again:
This reaction to hitting all time highs may have been unexpected, at least to some, but this consolidation is a normal part of Bitcon’s cycle and shows that the cycles are getting longer in line with Bitcoin growing as an asset. This also suggests that a repeat of 2013 is now off the cards.
