Bitcoin (BTC) Trending, with $50,000 Within Reach

Key Insights:

• On Wednesday, Bitcoin (BTC) rose for a seventh consecutive session, with $50,000 within reach.
• Luna Foundation Guard demand for Bitcoin continued to deliver price support.
• Technical indicators are bullish, with BTC sitting well above the 50-day EMA.

On Monday, Bitcoin (BTC) rose by 0.61%. Following a 5.16% rally from Sunday, BTC ended the day at $47,129.

Recovering from a Monday low of $46,669, Bitcoin struck a late intraday high of $48,208 before hitting reverse.

Bitcoin broke through the day’s First Major Resistance Level at $47,676 before a late slide back to sub-$47,200.

Bitcoin Fear & Greed Index Hits Reverse

Recovering from a March low of 21/100, the Bitcoin Fear & Greed Index rose to a March high of 60 on Sunday before a modest Monday fall back to 59/100.

Despite the decline, the index remained within the “Greed” zone. The move back into the “Greed” zone has coincided with the LUNA Foundation Guard making BTC purchases to support TerraUSD.

Looking across the global financial markets, Bitcoin also found support from a pickup in risk appetite. On Monday, the NASDAQ100 gained 1.31%.

Bitcoin Price Action

At the time of writing, Bitcoin was up by 0.59% to $47,405. A mixed start to the day saw Bitcoin fall to an early morning low of $47,073 before climbing to a high of $47,570.

Bitcoin left the major support and resistance levels untested early on.

Technical Indicators

Bitcoin will need to avoid the day’s $47,335 pivot to make a run on the First Major Resistance Level at $48,008. Bitcoin would need broader market support to break out from $47,500 levels.

In the event of another extended rally, Bitcoin could test the Second Major Resistance Level at $48,875 and resistance at $50,000. The Third Major Resistance Level sits at $50,413.

A fall through the pivot would bring the First Major Support Level at $46,466 into play. Barring an extended sell-off, Bitcoin should avoid sub-$45,000. The Second Major Support Level at $45,790 should limit the downside.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bullish signal. Bitcoin continues to sit above the 50-day EMA. This morning, BTC pulled away from the 100-day EMA, delivering support. The 100-day EMA pulled away from the 200-day EMA, which was also BTC positive.

Holding above the 50-day EMA, currently at $44,348, would provide continued support.