Bitcoin prices on Monday are on the move again, this time notching a multimonth high.
The top cryptocurrency by market cap hit its highest level since mid-May and briefly eclipsed the $50,000 mark. Bitcoin hit a high of $50,562 on the day before pulling back about $1,000.
Now that Bitcoin has gone from a recent low just below $30,000 back to $50,000, it begs the question: What happens now?
Bitcoin bottomed in late July and immediately turned higher, ripping off 10 straight daily gains.
Not long after that move, I looked at how Bitcoin could get to $50,000. Now that it's there, we have to reassess.
After bouncing around on both sides of the 200-day moving average, Bitcoin resolved higher, then pushed through the $47,100 level, which was the breakdown spot in May.
I’m watching one more upside level from here, at $51,100. That’s where the 61.8% retracement comes into play.
It would be a big run, but if Bitcoin can maintain momentum, we could see a push into the $58,000 to $60,000 zone. This area has been strong resistance, with only one real push occurring above it, which sent Bitcoin up toward $65,000.
On the downside, bulls should love a dip down toward $45,500 to $47,500. I realize that’s a fairly wide range, but there should be plenty of support in that zone.
It includes the 10-day, 21-day and 200-day moving averages, as well as uptrend support (purple line).
Below all these measures and the $42,000 area is on the table, followed by the 50-day moving average.
I’m not sure how long the rally in Bitcoin will last, but for now it’s riding a nice trend higher.
Let’s not bet against it until support begins to fail. Until then, dips are a buying opportunity.