The leading cryptocurrency has been performing well in recent days and could be set to rally higher soon.
The broader cryptocurrency market has been recovering from the losses recorded over the past few weeks. Bitcoin’s price has surged by nearly 10% over the past week and looks set to record further gains in the coming hours and days.
Bitcoin has been trading below the $50k level for the past few weeks. However, the coin’s performance has improved in the last few days, and it has been trading above the $50k level. Over the past 24 hours, Bitcoin has added more than 2% to its value and is now trading above the $51k mark again.
Key levels to watch
The BTC/USD 4-hour chart is bullish at the moment, thanks to the cryptocurrency’s performance over the past few days. At press time, Bitcoin is trading at $51,679, which is below its 50-day simple moving average of $54,472.
The MACD line has crossed the neutral zone, indicating that Bitcoin is currently performing excellently. Furthermore, the RSI of 66 shows that Bitcoin is heading into the oversold territory if the market momentum is maintained.
What to expect
If the current market momentum is maintained, Bitcoin could rally higher over the coming hours. Bitcoin could surpass its first major resistance level at $54,016 over the coming hours if the rally continues.
In the event of an extended bullish performance, Bitcoin could top the second major resistance level above $58,500 before the end of the day. However, unless there is a massive rally from the broader market, the $60k psychological level should limit further upward potential.
However, if the bears regain control, Bitcoin’s price could drop below the $50k mark before the end of the day. The major support level above $47,000 should limit further downward movement in the short term.