- Bitcoin price looks overextended as it grapples with the 50-day SMA and the weekly resistance barrier at $42,816.
- Ethereum price pierces through the bearish breaker and approaches the 50-day SMA at $3,242.
- Ripple price approaches the $0.757 to $0.807 supply zone that could cut the uptrend short.
Bitcoin price has seen tremendous gains over the past three days as it attempts to overcome a massive hurdle. While altcoins like Ethereum and Ripple have corresponded to this bullishness, investors need to exercise caution with fresh investments as a retracement could be around the corner.
Bitcoin price faces a decisive moment
Bitcoin price has risen 18% over the past four days and is currently hovering below the 50-day Simple Moving Average (SMA) and the weekly resistance barrier confluence at $42,816. If this uptrend is a bull trap, BTC is likely to see rejection followed by a retracement to the immediate support level at $39,481.
A breakdown of the said barrier will knock the big crypto down to $34,752. In an extremely bearish case, Bitcoin price could revisit the $30,000 psychological barrier and collect the liquidity resting below it.
BTC/USD 1-day chart
If BTC produces a daily candlestick close above the breaker’s upper limit at $44,387, however, it will invalidate the bearish thesis. While this development will alleviate the sell-side pressure, it does not mean that Bitcoin price has flipped bullish.
A daily candlestick close above $52,000 will produce a higher high and suggest the possible start of an uptrend.
