Bitcoin’s surge above $47,000 doesn’t necessarily mean the first cryptocurrency is on the verge of rising to $50,000, as there are at least two major resistance points ahead of it.
Upcoming Bitcoin Resistance
Bitcoin is currently consolidating at a major resistance level, keeping the cryptocurrency from breaking the $48,270 resistance point.
The next resistance level before $50,000 will start at $49,620, where nearly 1.5 million addresses have opened positions. On the other hand, the aforementioned range is much smaller compared to the $47,796 to $49,211 resistance zone, with a total volume of 1.16 million BTC.
The most actual resistance remains significantly greater than the nearest support level, which closed at $46,312 according to the indicator.
The predictions made by traders using this indicator are based on the psychology of the holders; traders who have been in the red for a long time tend to sell or get rid of their assets immediately at the entry point to avoid losses if the asset pulls back for any reason.
In the example provided, the range of $47,796 to $49,211 contains approximately 2.4 million addresses with positions worth nearly 1.2 million bitcoins opened, which means that some of the funds concentrated in this range may be in the first cryptocurrency It is sold when entering this area, which will create tremendous pressure on the asset price.