Bitcoin’s rally resumed on Friday as traders ushered in the European session. The flagship cryptocurrency is trading new all-time highs above $35,000 while aiming for $50,000. At the time of writing, BTC/USD is doddering at $35,650 amid a growing bullish grip.
Bitcoin aims for $50,00-
The recent deep to price levels slightly under $28,000 sent jitters across the market. Bitcoin bears and critics found a loophole to drive their narrative; the rally had come to a sudden end, and investors should prepare for a broken rollercoaster ride. However, the king of cryptocurrencies ignored the bearish calls in favor of an upswing above $30,000. Trading above $34,000 (recent pivotal level) has encouraged more buyers to join the market, explaining the majestic upswing above $35,000.
At the time of writing, $36,000 seems to be the only immediate hurdle. If broken, BTC/USD could extend the uptrend to levels above $40,000. Some prominent analysts believe that Bitcoin is set to hit $50,000 by the end of the week.
The Direction Movement Index highlights a bearish divergence while pointing towards an an upswing to a local high. The upswing may occur after a correction or perhaps a consolidation.
Meanwhile, the bullish outlook will be invalidated if Bitcoin fails to break the resistance at $36,000 to make way for gains above $40,000. On the downside, support at $34,000 must continue to hold to avoid dips towards $30,000, which may result in similar bearish actions as last week’s dive to $28,000.
On the other hand, the Relative Strength Index (RSI) makes its way into the oversold region. Thus, the possibility of a reversal coming into the picture in the near term.