Bitcoin has been performing well over the past few days and could be set to break a major resistance level soon.
The cryptocurrency market has been slowly recovering from its slump over the past few days. In the past week, the total cryptocurrency market cap has increased by more than $200 billion, with Bitcoin one of the top winners.
The leading cryptocurrency has seen its value soar by more than 12% over the past seven days. It broke past the $40k resistance level a few days ago and now looks prime to rally past the $45k psychological point.
Thanks to the rally embarked by Bitcoin and other major cryptocurrencies, the total market cap could surpass the $2 trillion mark for the first time in weeks.
At press time, Bitcoin is trading above the $43k level, up by nearly 2% in the last 24 hours. The continuation of this rally would allow BTC to surpass the $45k resistance level and pave the way for it to trade around $50,000 for the first time since December 2021.
Key levels to watch
The BTC/USD 4-hour chart is bullish at the moment, thanks to the rally embarked by the leading cryptocurrency over the past 24 hours. The technical indicators show that BTC is performing excellently and could rally higher soon.
The MACD line is above the neutral zone, which shows a strong buying pressure on Bitcoin at the moment. The 14-day relative strength index of 48 shows that Bitcoin is currently out of the oversold region.
If the bulls remain in charge, BTC could test the $45k psychological level before the end of the day. Unless there is an extended rally, the second major resistance level at $47,613 should cap further upward movement in the short term.