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  • On Friday, Bitcoin continued to trade bullish at the 49,745 level, scoring +0.36% so far. 
  • The Bitcoin price prediction remains bullish above the 50 days EMA support level of 48,800 level. 
  • Forex trading market participants should look for a buy trade above the $49,350 level.

On Friday, Bitcoin continued to trade bullish at the 49,745 level, scoring +0.36% so far. The BTC/USD closed at $49,291.0 after reaching a high of $50,365.0 and a low of $48,633.0. BTC/USD extended its gains and pushed its prices above the $50,000 level, its highest since 23rd August. The Bitcoin price prediction remains bullish above the 50 days EMA support level of 48,800 level.

Investors’ Sentiment Underpins Bitcoin Prices

The cause of the rally in BTC/USD was hard to pinpoint as, unlike stocks, which are driven by fundamentals, cryptos are purely market-driven. Among various market dynamics, investor sentiment, and pieces of news to spark a rally, the foremost and most important one was the upcoming launch of Bitcoin Law in El Salvador.

Many investors’ optimism was driven by El Salvador’s plans to start using Bitcoin as its national currency from next week. However, other factors were also included in the rally of BTC/USD along with the broader cryptocurrency market surge. 

Other factors driving the market trend on the upside were the strength of other prominent digital currencies. Specifically, Cardano’s ADA and ETH are potentially accelerating the gains of the broader cryptocurrency market.

Lack of Central Bank’s to Taper Asset Purchases Boost Crypto Demand

Another reason behind the rally in the cryptocurrency market could be the recognition of the US Federal Reserve and other central banks worldwide. These banks have no intention of slowing down their asset purchase programs. Institutions recognize that they need safety in non-dollar denominated assets, and Bitcoin was perfectly designed for this purpose.

According to some analysts, the recent spike in the whole cryptocurrency mood could be because of the bullish developments in the market. Investors were moving in favor of cryptocurrencies, and this bullish stance pushed BTC/USD again to the $50,000 level. 

Bitcoin on a bullish run despite China’s crackdown

Despite the China crackdown, the whole crypto market seemed to be focusing more on the positive news of institutions adopting cryptocurrencies. Recently, the NFT and DeFi market boom has also pushed ETH, ADA, Solana, and other such digital currencies with the supporting platform.

The Bitcoin minor Marathon Digital Holdings announced a new facet of its collaboration with institutional bitcoin services provider NYDIG. The expanded partnership will enable access to NYDIG’s products and services tailored for miners to all members of Marathon’s bitcoin mining pool, MaraPool.

Bitcoin price prediction
BTC/USD 4-Hour Chart

Bitcoin Price Prediction – Daily Technical Levels

Support Resistance

48494.4 50226.4

47697.7 51161.7

46762.4 51958.4

Pivot Point: 49429.7

Bitcoin Price Prediction: Ascending Triangle Pattern in Play

The Bitcoin price prediction remains bullish above the 50 days EMA support level of 48,800 level. On the 4-hour timeframe, the BTC/USD pair has formed an ascending triangle pattern extending resistance at 50,515 levels. 

The double top pattern extends solid resistance at $50,515. On the 4-hour chart, the BTC/USD pair has formed an upward trendline that supports the pair at around 48,191 levels. However, the pair may find immediate support at the 49,365 level first.

On the bullish side, Bitcoin’s significant resistance stays at the 50,515 and 51958.4 levels. In contrast, the breakout of the 49,365 support could extend the selling trend until the next support levels of 48,191 and 46,700.

The oscillator indicator like Stochastic RSI has started coming out of an oversold zone. It signals the chances of a bullish bounce-off above the 49,339 level. While the 50 daily EMA (exponential moving average – red line) stays at 48,500, it may extend resistance to Bitcoin’s bullish trend.

Therefore, the Forex trading market participants should look for a buy trade above the $49,350 level. The initial target remains at $50,510 and $52,000. Alternatively, the sell-stop can be placed below the 49,250 level to target 48,200 and 46,750 support levels. All the best. 

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