The cryptocurrency market has been slowly recovering since starting the week in a negative fashion and is primed to record more gains in the coming hours
The cryptocurrency market has performed excellently in the past 24 hours, with most of the leading coins all up by more than 2% during that period. Bitcoin has continued its slow recovery towards $50,000 again after crossing the $48,000 resistance level.
Ether is perhaps the biggest winner amongst the leading cryptocurrencies after rising by nearly 7% in 24 hours. ETH has surpassed the crucial $3,500 level and is now trading above $3,600 per coin. The cryptocurrency topped the $3,800 mark last week before the crash and could be set to rally towards that level once again.
Cardano (ADA), Binance Coin (BNB), XRP and Dogecoin are some of the other leading coins that are currently trading in the green zone. Bitcoin’s performance has been excellent in the past few days, and market analysts are confident it could hit the $50,000 mark soon.
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Bitcoin price outlook
The BTC/USD 4-hour chart is successfully in the bullish zone after spending the past few days battling to move out of the bearish area. The MACD line is above the threshold, indicating bullish momentum, while the RSI of 62 shows a strong buy signal in the market.
Bitcoin has successfully tested the $48,000 resistance and could be set to move towards the next resistance level at $50,000. Once Bitcoin is able to gather enough momentum to break past the $50,000 resistance, the bulls could have enough power to push towards the next resistance level, located at $51,500.
BTC/USD 4-hour chart. Source: TradingView
Unless there is a market breakout, the resistance level at $53,000 should cap further upward movement in the short term. On the flip side, Bitcoin dropping below the $48,000 mark could see it develop a downward momentum in the short term.
It could be forced to defend the support level at $47,300, which is also its 20-day exponential moving average (EMA). If BTC declines below that level, it will move towards the support at $46,000 over the coming hours.
However, the major support level at $45,500 could limit further downward movement in the near term unless there is an extended market sell-off.