PrimeXBT Analyst: Bitcoin Price Targets $55,000 Should $42,000 Support Hold
Bitcoin price has blasted off back to highs set earlier in 2021, making a potential bottom around $30,000 more likely as time passes and bulls gain momentum.
According to PrimeXBT analyst Kim Chua, the leading cryptocurrency by market cap could continue to build on its recent strength, furthering its recovery rally should any early week retracement hold within a support zone pegged between $41,000 and $43,000.
$42,000 Resistance Zone Flipped As Support Must Hold
With the pivotal level of $40,000 now reclaimed, Bitcoin bulls now have to protect positions around $41,000 to $43,000 and hold support during any retracement that occurs this week. Bitcoin price has climbed more than 50% over the last three weeks, making a pullback at this point probable.
The leading cryptocurrency by market cap also has formed a potential bearish divergence on the daily RSI. High RSI could also indicate another massive push in price action that has yet to arrive, so the short-term trend has reached a pivotal point.
Bitcoin Bull Flag Breakout Sends Bitcoin To $46,000, $55,000 Could Be Next
However, the last week’s worth of technicals has effectively “painted a bullish flag” pattern, according to Chua, which she claims broke out late Friday night. The breakout through resistance at $41,500 and $43,000 triggered a cascade of stop losses, sending the price per BTC rising to touch $46,500 at the high.
With a sizeable bullish move now behind, the market could consolidate and retest past resistance levels as support before any additional upside movement. Resistance at $46,000 is especially critical as it could result in a “Golden Cross” on the EMA. Such a cross would signal higher prices ahead, says Chua.
Golden Cross Could Give Crypto Bulls Boost With More Solid Foundation
If Bitcoin price can build a “more solid foundation” at higher support levels, a push to a target of $55,000 could be next. Chua adds that things are “looking good overall” for cryptocurrencies and that the “resumption of the bull run is looking more and more likely by the day.”
A break of the current all-time high of $65,000 would be a clear signal that the bull run is back on.