Bitcoin trading at $48,000 after an amazing breakout: What’s next?

The bitcoin price finally broke above the 45K area which corresponds to the upper level of the congestion area – a move that saw the crypto total market cap reaching back the astounding number of $2,16T.

Bitcoin fooled many traders after a jerky price movement. It was slowly ranging at lower levels for more than three months. During this period, the market was submerged with FUD and only a few positive announcements in favor of the crypto industry. 

Breaking the 45K resistance that lead to this bullish tendency occurred on Sunday between 10:35 pm and 10:40 pm (UTC). An impressive movement that can easily be observed on a 5min candle surging with more than 4%.

Some experts linked this movement to the opening of Asian markets while others are pointing to the last Russian statement about accepting bitcoin against Russian gas and oil exports. At this point, we now have solid support at around the 44K to 45K price, while the next important resistance is the 52K level.  

This pump is a confirmation of a bullish reversal but should be taken with a grain of salt given the relatively low volume and the fact it happened during the weekend. The next few trading days will be decisive as we might see a confirmation of this bullish trend if bitcoin holds the 45.5K support.

If the Bitcoin price corrects

 If the price corrects, we could carry out a throwback (retest from above) on the 44-45K support area which could be a good price entry for traders and accumulators who want to strengthen the purchase (with possible excursions below in excess bearish or a low wick).

Finally, short-term, it cannot be ruled out that we are witnessing a bull trap induced by last night’s breakout on the simple 5min time frame… so we must avoid falling into euphoria during the next few days until the signals are confirmed.

But, long term, we can clearly see the first signals indicating the end of the current mid-cycle correction.