The current week has become a new stage in the growth of the first cryptocurrency, which managed to break out of the descending parallel channel. Bitcoin continued its recovery over the past week and successfully crossed the $50k threshold on October 5. Now the price is trying to stabilize above the round mark, and if bitcoin manages to do this, then the next resistance line will become the most important. Already this week, the main cryptocurrency may start a full-fledged bullish rally, which will end with the establishment of a new historical record.
Now bitcoin is confidently entrenched above $50k, having risen in price by 4% per day. At the same time, trading volumes remain relatively low, at $35 billion with negative price movements. Also, there is an increase in social activity in the information field and a steady upward trend in the growth of the number of unique addresses in the cryptocurrency network. All this is supported by the technical component, suggesting that the difficulty of mining bitcoin increased by 5%. Also, the trend of coin accumulation has not gone anywhere, which is already bearing the first fruits in the form of reaching $50k. As the cryptocurrency moves further, the number of coins in free circulation will fall, due to which some of the sellers' pressure will be leveled.
At the same time, do not be deceived and declare bitcoin's consolidation above $50k. The price is in limbo and is trying to stabilize in order to confidently complete the trading day over an important border. As of 15:00 UTC, BTC has confidently consolidated above the resistance zone of $49.2k and crossed the round mark of $50k. Given the high activity of buyers near this zone, there is a great opportunity to consolidate above $50k and continue the upward movement to the next important sales zone. It passes at $53k, and with its bullish breakdown and repeated successful retest, we can talk about a reversal of a broad upward trend. Under such conditions, BTC/USD may reach $60k in mid-October, but basically, everything will depend on the speed of overcoming the $53k zone. Most likely, the current week will be spent on storming this peak and retesting it after a slight rebound.
As of 15:30 UTC on the four-hour chart, everything points to a confident end of the trading day above the $50k mark. All the major technical indicators are in the safe zone, indicating a period of stabilization and accumulation for a subsequent breakthrough. At the same time, a bearish wedge is likely to form, which may mean a local correction right before the close of trading. In this case, a pullback to $49.2k and a subsequent fall is possible if the market takes a wait-and-see position. However, the figure has not been formed, and it is likely that everything will cost a test of the support zone at $49k and a return to the growth area above $50k.
The daily chart looks positive for the bulls due to the upward movement of all major indicators. However, the stochastic and the RSI indicator are above the 60 zones, which may indicate that the coin is overbought and further correction. Despite this, right now the buyers' positions are strong, and, in case of successful completion of this trading session, the first assault of $53k may take place on October 6. At the same time, there is no doubt that for bitcoin to fully grow, a local correction in the region of $53k is needed. Taking into account the possible adoption of bitcoin by the Brazilian government as a means of payment, the continuation of the accumulation period, and the restoration of the hashrate, we are waiting for a month of launching a full-fledged bullish trend, the start of which may occur this week.
