Bitcoin (BTC) It’s been a very eventful two weeks. At the end of March, the coin surged only to miss its 200-day SMA of around $48,000. It has fallen sharply since then, but there could be something on the upside to grow even higher in the coming week. Here are some important developments:
- BTC has been consolidating above two major support zones of $42,000 and $40,000.
- The price action has made a bullish crossover between the 50 and 100-day SMA.
- These technical indicators suggest that the coin is poised to rally with minimal downside risk.
Data source: Tradingview
Bitcoin (BTC) – The road to $52,000
Bitcoin showed a bit of weakness in early April. After testing its 200-day SMA of around $48,000, the coin failed to cross over and as such fell sharply afterwards. In fact, BTC fell for the last 3 days in a row.
But despite this, there is still a lot of hope for optimism. First, BTC is holding above two strong support zones of $42,000 and $40,000. This means that the downside risk remains very small. Furthermore, BTC has managed to achieve a crossover between its 50 and 100-day SMA. This suggests a bullish alignment and BTC could be in the next few days.
The breakout will eventually push the price action towards a crucial demand zone above $46,000. When this happened, it is likely to trigger a massive buy that will eventually break out of the 200-day SMA, pushing a BTC towards $52,000.
Is it time to buy Bitcoin (BTC)?
Yes, this is the time to buy. BTC is above very strong support so it is hard to see it falling further.
When considering that the upside potential is quite high, it makes sense to accumulate BTC. We expect gains of at least 25% in the short term. Furthermore, the long-term outlook also looks very positive.