BTC Upside Potential Limited But Remains Fundamentally Strong

17 set 2021

• Bitcoin price holds above robust support despite $48,000 seller congestion zone thwarting bullish efforts.
  A spike in on-chain levels throughout the week shows that Bitcoin is fundamentally ready to hit higher levels.
  

Bitcoin bulls targeted closing the gap to $50,000 before this week came to an end. However, price action appears to have been limited to under $48,000. Prior, the flagship cryptocurrency plunged to $43,477 (data by Coinbase) following a massive breakdown from $52,925, September highs.

Bitcoin is teetering slightly below $48,000 while bulls get ready to take down this primary barrier at the time of writing. The mission is to focus on bring a fierce fight to levels heading to $50,000. Trading above the psychological resistance at $50,000 may trigger more buy orders as investors flock to the market in speculation for a run-up to $60,000.

Bitcoin Bulls Keep Support Levels Intact

Despite the enormous seller concentration at $48,000, as highlighted 50% Fibonacci level, Bitcoin has settled above $47,000 for near three days. A confluence zone formed by the 100 Simple Moving Average (SMA) and the 200 SMA reinforce this demand area, allowing bulls to focus on gaining ground.

Bitcoin must make a four-hour close above $48,000 to validate the upswing to $50,000. The Relative Strength Index (RSI) credits the bullish outlook, following a rebound marginally above the midline. As the RSI moves closer to the overbought area, we expect buying pressure to surge and push BTC higher.

According to Santiment, Bitcoin is experiencing a solid week from an on-chain perspective. Network activity has been on an upward role following the recent slump to 672,500 active addresses per day. Currently, the Bitcoin network has 957,500 addresses interacting with the protocol. The increase implies that investor speculation is gaining traction to sustain the uptrend in the near term.

Bitcoin is, therefore, one major bump away from blasting past $50,000. In addition to the rising network activity, the profit or loss ratio has also reset from the negative region, as highlighted by Santiment. Investors tend to buy more as the ratio lifts above the zero line amid anticipation for a remarkable upswing in the short term.

Bitcoin Intraday Levels

Spot rate: $47,942

Trend: Bullish bias

Volatility: Growing

Resistance: $48,000

Support: The 100 SMA and the 200 SMA confluence; four-hour chart