Bitcoin (CRYPTO: BTC) broke up bullishly from a descending trendline Benzinga called out on Sunday.
Last week Geoffrey Kendrick, leader of the global research team at Standard Chartered Invest gave a $150,000 price target for the crypto and on Monday Ark Invest founder and CEO Cathie Wood reiterated her $500,000 target.
The apex cryptocurrency has a way to go before reaching either of the hefty predictions but on Tuesday Bitcoin regained key support levels that could propel it higher over the coming days and weeks. The first goal for the bulls will be to erase the losses from when the crypto markets flash crashed just prior to El Salvador adopting Bitcoin as legal tender.
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The Bitcoin Chart: After Bitcoin plummeted Sept. 7 it popped up to regain a key support level at $44,850. Since then, the crypto has retested the level as support each day and held above it.
On Tuesday Bitcoin reacted to the support level, rose 4% higher and busted through the descending trendline that had been holding it down since Sept. 8. The crypto was set to meet the apex of the triangle on Sept. 16 and a break was due before the date.
The crypto regained then regained a higher support level at $46,718 and was attempting to print a bullish Marubozu candlestick, which indicates higher prices may come on Tuesday. Bulls will want to see Bitcoin close the day near or above $46,700 to feel confident going forward.
Bitcoin is trading above the eight-day exponential moving average (EMA) but below the 21-day EMA with the eight-day EMA trending below the 21-day, which indicates indecision. Both EMAs have started to curl slightly upwards, however, which is bullish. The crypto is also trading above the 200-day simple moving average, which indicates overall bullish sentiment has returned.
- Bulls want to see sustained big bullish volume drive Bitcoin up over the 21-day EMA, which will eventually allow the eight-day EMA to cross back above it. If the crypto can regain the level as support, it has room to trade back up toward the $50,000 level.
- Bears want to see big bearish volume come in and drop Bitcoin back down below the descending trendline, which could eventually force the crypto down under the lower support at $44,850. If Bitcoin were to fall below the level, it could retrace toward the $42,223 mark.