Bitcoin: $55K on Track as Bullish Strength Proves Resilient Amid US Dollar Uptrend
(Bitcoin) has been on a steady uptrend since the start of the month, driven primarily by demand for the spot Bitcoin ETF.
Notably, the upward momentum remained robust even when this week's CPI data came above expectations, briefly creating a panic atmosphere in the market.
However, a key point of consideration is the emergence of short-term resistance at this juncture.
Bitcoin has encountered resistance at the $51,700 level, which is the lower boundary of the Fibonacci expansion zone based on the recent correction, after experiencing fluctuations between the January peak of $48,800 and the bottom price of $38,500.
The cryptocurrency needs to surpass this resistance and climb to $53,000 to establish it as a confirmed support level. If successful, the next potential target is $55,000 (Fib 1.618).
As of yesterday, $51,700 serves as the pivotal point. A daily closing below this price could signal a retracement towards an average of $49,500.
A breach of this support might extend the correction, heading towards the $46,000 region. Bitcoin has displayed overbought conditions on the daily chart, primarily driven by ETF-backed purchases.
Trading around the $51,700 mark appears critical, indicating a potential short-term correction based on the current outlook.
If we check the last one-year trend with the weekly Bitcoin chart, it shows that the price attempted to breach the upper line of the ascending channel this week.
Bitcoin made a crucial breakthrough this week by surpassing the $49,000 level, aligned with the long-term Fib 0.618.
The significance of this move cannot be overstated. If buyers successfully defend Bitcoin against potential sales in the $46,000 — $49,000 range, considering its overbought conditions in the short
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