On the cusp of a bull market: bitcoin overcomes $50K and moves towards final resistance at $51.2K

Bitcoin has been accumulating volumes for several weeks in a narrow range, limited by powerful support levels. At the end of last week, the cryptocurrency exited this area and again unsuccessfully tested the $50,000 milestone. As a result, since August 29, the coin has been trading inside a downward parallel channel, which was formed during a local correction. On September 2, BTC made a bullish breakout of the downward channel line and will soon approach the final bearish limit of $51,200.

Over the past day, the main crypto asset has risen by 5% and as of 14:00 UTC, it is quoted at $50,000. Now the coin is consolidating at an important psychological mark before the final assault on the resistance level at $51,200. There is an increase in the volume of daily trading, which has reached $40 billion, and the capitalization of the asset has approached one trillion. The two-hour dynamics of the price movement is near the zero mark, which indicates a local accumulation phase and a parallel consolidation at an important mark. Despite the powerful breakout, bitcoin is still inside the bearish trend, the upper line of which is at $51,200.

The cryptocurrency is confidently holding above $50,000, but the technical charts of the asset indicate signals to weaken after the breakout of the sales area. Over the past hour, the situation has stabilized, but there are no obvious bullish sentiments around bitcoin. The four-hour chart of the cryptocurrency shows the prospects of a successful consolidation above $50,000. This is evidenced by the MACD, which has left the red zone and confidently maintains its upward dynamics. At the same time, stochastic shows signs of a future reversal and weakening of the positions of buyers who are trying to push the price higher. The RSI indicator continues to be around the 60 mark.

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On the daily chart, the first cryptocurrency also does not show a single bullish trend. The RSI indicator reached 65, which indicates a local increase in demand for the asset. Stochastic confirms this trend and also continues the upward movement. However, there are signs of weakness on the MACD, which indicate a period of consolidation. At the same time, there are prerequisites for the formation of a local bullish intersection, which are supported by other technical indicators. There was also a possibility of a hidden bullish divergence forming on the charts over the past few hours, but buyers pushed the price and the formation was not completed.

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The on-chain analysis of cryptocurrency indicators also indicates the end of the accumulation period and the activation of users after the $50,000 breakout. The indicators of unique and active addresses in the bitcoin network have begun to grow, although a clear upward trend has not yet formed. An extremely important component of the future bullish rally of BTC is the fall of the 30-day MVRV. The indicator fell to 4%, which indicates the appearance of a significant layer of a new audience that has entered the asset and expects to make a profit. Thanks to this, the pressure associated with profit-taking has significantly decreased. Whales also demonstrated excellent activity, accumulating more than 40,000 bitcoins over the past week.

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All major indicators point to a bull market approaching, with $51,200 being the last hurdle. The current indicators are still far from the peak values, and local weakening can become an obstacle on the way to a bullish breakout of the resistance level. However, there is no doubt that the market has activated and the accumulation phase is coming to an end and a bullish break of $51,200 will soon mark the beginning of a bull market.

The material has been provided by InstaForex Company - www.instaforex.com

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