Over the past few months, bitcoin prices have been trading incredibly well. However, the cryptocurrency has been under pressure lately.
The recent dip sent bitcoin down toward $50,000 and a key moving average.
Bitcoin rallied on March 24 on news that Tesla (TSLA) - Get Report would begin accepting the cryptocurrency as payment. However, it was hammered from the highs as the 10-day and 21-day moving averages rejected it.
At any rate, where can bitcoin go from here?
On Thursday before the market opened, those watching bitcoin noticed it tagged the key 50-day moving average.
Bitcoin held firm on Thursday, giving investors a modest bounce, but weren’t able to turn higher on the day. That’s OK, as long as support held, which it did.
Now we’re getting a rotation up through Thursday’s high as bitcoin pushes through $53,116.
The action is solid, but we need to see more follow-through. Specifically, bulls are looking forbitcoin to push back up through its 10-day and 21-day moving averages - the two measures that were resistance a few days ago on that Tesla rally.
If it can do that, $58,000 is on deck, followed by $60,000 and the all-time highs. If bitcoin goes on to make new highs on this move, a rally to the $67,600 area is possible.
That level marks the 161.8% extension from the February pullback.
If bitcoin can’t garner much momentum from here - for instance, say it fails to reclaim its short-term moving averages - then we need to consider the downside, too.
Should the cryptocurrency lose the 50-day moving average as support, look for the 10-week moving average to attract buyers near $48,500.
A close below this mark could put $45,000 and the 100-day moving average in play. For now, investors can stay bullish while the 50-day moving average remains support.