The BTC price started a decent uptick on Tuesday and broke above the $48,000 resistance zone. The bulls gained strength, resulting in a retest of $50K with buyers attempting to flip this critical level into support.
A high was formed near $50,190 before the flagship crypto corrected lower and started consolidating gains around the $48K level.
The strong upward move saw BTC recover from one of the largest pullbacks in history that pushed prices below the $43K level a few days ago. The recovery from the weekend correction comes amid bullish maneuvers from MicroStrategy, who announced a $15M bitcoin purchase on Monday.
The king coin gained more bullish momentum today as Goldman Sachs revealed that it would restart its cryptocurrency trading desk in the coming week. BTCUSD is thus benefiting from mounting institutional interest, with top firms eager to buy each dip during the $43,000 retest.
BTCUSD Chart by TradingView
What Next For Bitcoin?
As to where the world’s largest crypto could be headed next, analyst Dave the Wave is warning that it is now “crunch time” for the coin to prove its strength or risk a violent breakdown.
David Lifchitz, the CIO of ExoAlpha, declined to confirm that Bitcoin’s pullback was over but agreed that the $44,500 level was acting as a strong support base. He, however, expressed concerns over where the BTC price action would head in the coming weeks, given that March is historically a bearish trading month for the top crypto.
The onset of tax season in the U.S. has in the past placed some bearish pressure on the crypto market. This is because investors are often forced to liquidate some of their holdings to meet their tax obligations on earlier realized capital gains.
Nevertheless, Lifchitz shared a bullish perspective of the BTC price action, noting that the digital coin was still showing signs of a fresh uptick despite last week’s intense market selloff.
“Despite the 20% pullback, we’re still in an upward sloping trend since the October $10K breakout. The big unknown is what the miners will do as they are net sellers,” he commented.
ETH Price is Recovering
Meanwhile, Ether is showing many positive signs after it started a steady increase from lows of $1,300. The second-largest crypto-asset recovered above the $1,450 and $1,500 after forming a strong support base near $1,350.
There was even a spike above $1,600 as ETHUSD gained momentum. The pair traded as high as $1,618 before correcting to its current price just above $1,500. A daily close above $1,600 could open the doors for a fresh uptick.
ETHUSD Chart By TradingView