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Bitcoin Aims at $47,000 as It Bounces from Fundamental Support

Thu, 04/21/2022 - 10:16
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Arman Shirinyan
Bitcoin has a chance to rally further up as it successfully bounces from a support
Bitcoin Aims at $47,000 as It Bounces from Fundamental Support
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Following the most recent bounce of Bitcoin from the strong support of $39,226, Bitcoin may aim at the move to the upper border of the ascending channel, which currently remains at approximately $47,780.

As the daily chart suggests, Bitcoin is currently in the process of a short-term reversal after successfully withholding selling pressure while remaining on the support line at around $39,000. Previously, U.Today noticed that Bitcoin is extremely close to breaking the support that could have caused a massive plunge to $30,000.

Bitcoin Chart
Source: TradingView

But thanks to the support of larger investors, the first cryptocurrency has successfully bounced off the lower border of the ascending channel and almost reached $42,159 but slightly retracted after facing the first significant resistance of the 50-day moving average.

Other indicators' data

According to data provided by additional technical indicators like moving averages, Bitcoin still remains in the long-term downtrend as the 200- and 50-day moving averages are crossed with a longer period line staying above the short-term line.

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Usually, a trend is considered bullish only after the 50-day MA stays above the 200-day moving average. Bitcoin had its most recent "death cross" back in January after plunging by more than 30% in less than a month.

No rally is possible without a proper trading volume, which is why Bitcoin has not yet spiked to a new high as the trading volume remains at a relatively low level, while high-risk assets like digital currencies remain unpopular amid the global risk-off tendencies on financial markets.

At press time, Bitcoin consolidates at $41,800 and yet fails to break the through 50-day moving average, which is not usually considered a strong resistance during a ranging or slightly ascending market.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.