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What’s Next For Bitcoin Now That It Has Surpassed $50,000?

What’s Next For Bitcoin Now That It Has Surpassed $50,000?

Bitcoin broke through $50,000 earlier today, and it has been fluctuating close to that key, psychological level since.

Now that the world’s most valuable cryptocurrency by market capitalization has risen above the $50,000 price point (for the first time since 2021), several analysts weighed in on what key variables traders should watch next.

“Bitcoin remains in favor with investors, after the ETF approval perked new public interest in the industry,” stated Brett Sifling, an investment advisor for Gerber Kawasaki Wealth & Investment Management.

“The next major catalyst is the halving that should happen in the next few months,” he wrote via emailed comments, referring to the upcoming event that will cut the Bitcoin network’s rate of new supply by 50%.

“Since Bitcoin is hard to value based on traditional metrics, investors tend to see these major catalysts like the halving as positive developments, especially since it lowers the supply of Bitcoin that comes onto the market due to Bitcoin miners,” Sifling stated.

Scott Melker, a crypto investor who is the host of The Wolf Of All Streets Podcast, also weighed in on the major developments that traders should watch.

“Bitcoin is trading in a range, absorbing the slowing selling pressure from GBTC and awaiting the halving in April,” he stated via email.

After providing the aforementioned commentary, which focused on fundamental developments, Sifling switched gears, identifying some key levels of support and resistance that market observers should monitor, starting with the $50,000 level that bitcoin managed to surpass today.

“Investors should watch if Bitcoin can hold the recent high around $50,000 level, which could potentially turn into a new support level,” he stated.

“I would also expect some resistance around the $52,000-$53,000 level, which were prior highs back in 2021 and 2022. If we break that level, it could potentially give momentum for a continued breakout,” Sifling emphasized.

“As for support, it’s important that if Bitcoin can’t hold above $50,000, that it doesn’t fall below the ~$45,000 mark. If it does, falling below $40,000 could signal a break in this year’s uptrend and suggest further downside,” he noted.

Grant Tungate, senior analyst of systematic trading for Blockforce Capital, also offered some technical analysis for this article.

“BTC rallied to new highs on the year today, surpassing the ETF launch day high of ~$49k,” he wrote via emailed comments, adding that “$49k is now logical support near term.”

“Near resistance is ~$52k, and from there the 2021 all time highs ~$69k will be the most key level,” he stated, singling out the cryptocurrency’s all-time high, which was reached in late 2021.

“If there is a major failure here the Jan 24th low of $38.5k then 200d moving average at ~$35k are support levels to watch,” Tungate added, clarifying what could happen should bitcoin encounter notable downside.

The chart below displays the key levels of support and resistance he singled out:

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.

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