Bitcoin (BTC) has had a very eventful two weeks. At the tail end of March, the coin surged only to fall short of its 200-day SMA of around $48,000. It has fallen sharply ever since, but there could be some upside to grow further in the week ahead. Here are some important developments:
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BTC has consolidated above two important support zones of $42,000 and $40,000.
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The price action has achieved a bullish crossover between the 50- and 100-day SMA.
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These technical indicators suggest that the coin is about to surge with minimal downside risk.
Data Source: Tradingview
Bitcoin (BTC) – The road towards $52,000
Bitcoin showed a bit of weakness at the start of April. After it tested its 200-day SMA of around $48,000, the coin failed to cross and as such, it fell sharply after. In fact, BTC dropped over the last 3 days in a row.
But despite this, there is still a lot of hope for optimism. First, BTC remains above two strong support zones of $42,000 and $40,000. This means that downside risk remains very small. Also, BTC has managed to achieve a cross-over between its 50- and 100-day SMA. This suggests a bullish alignment, and BTC could break out in the days ahead.
The breakout will eventually push the price action towards a crucial demand zone above $46,000. When this happens, it will likely trigger massive buying that ultimately smashes the 200-day SMA, pushing BTC towards $52,000.
Is it time to buy Bitcoin (BTC)?
Yes, this is the time to buy. BTC is sitting above very strong support, so it's hard to see it dropping any further.
When you consider that the potential upside is quite high, it makes sense to accumulate BTC. We are expecting gains of at least 25% in the near term. Besides, the long-term outlook also looks very positive.