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- Bitcoin heads north after breaking through the psychological $50,000 mark.
- More buying pressure could push prices towards $52,000.
- A decisive close above $54,500 could pave the way for $100,000.
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The leading cryptocurrency appears to be unstoppable as it continues its upward trend. Although Bitcoin faces a strong resistance level ahead, a rally to $52,000 looks imminent.
Bitcoin exceeds $50,000
Bitcoin has breached $50,000 for the first time in over a month, showing no signs of wanting to slow down.
The top cryptocurrency is challenging the current downward trend in traditional financial markets, bringing the cryptocurrency market cap to nearly $2.2 trillion.
The Tom DeMark (TD) sequential indicator has previously flashed a sell signal on the 12-hour BTC chart. The bearish pattern predicted that the major cryptocurrency was constrained by a short correction before resuming the uptrend. However, Bitcoin printed two green candlesticks today, invalidating the pessimistic outlook.
More buying pressure could push Bitcoin towards $52,000. This bullish target results from the y-axis of a descending wedge that formed between August 19 and October 1.
It is worth noting that the TD setup trend line is located just below the target of the wedge at $51,200. This resistance level can play an important role in bitcoin’s bullish trend, and determine what happens next.
For example, a $51,200 deduction can generate “fear of missing out” among investors, encouraging them to buy. The sharp rise in buying pressure could be large enough to push prices beyond the $52,000 target represented by the falling wedge.
If this happens, then Bitcoin will need a decisive close above $54,500 to continue its upward trend towards $100,000.
On the other hand, the profit taking could rise around the $51,200 level. Bitcoin could then correct to $48,000, depending on the amount of downward pressure created. A breach of this crucial support area could lead to panic selling, pushing BTC towards $45,000 in a bearish scenario.
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