Bitcoin price surprised the market on Friday with a gain of more than 11%, the largest one-day gain since mid-June.
The upward momentum was recorded after US stocks rose, which ended the week with gains despite the high volatility, strong growth for Amazon shares and disappointing move for Facebook shares.
What does bitcoin need to keep going up?
Bitcoin held its breath on Saturday after posting solid gains.
Currently, eyes are waiting for the next step in Bitcoin’s march, as the recent rise has led to an improvement in risk appetite, especially after the US stock market also rose.
According to the technical analysis of the “coingape” platform, Bitcoin needs to close above $44K to maintain the bullish momentum.
Bitcoin has breached the descending trend line from the highs at $69,000.
But a close above $44,000 is required to maintain the upward path.
Doji candle formation indicates that investors may not be convinced by the current price action.
The daily Relative Strength Index (RSI) rose to 55 after crawling near 38.
Any increase in the momentum indicator will push the price further higher.
After meeting at the immediate target of $42,000, the bulls will flex their muscles towards $48,000.
This will also coincide with the test of the 200 daily moving average.
Acceptance above the crucial moving average will recoup the highs made on December 3 at $57,670.
Bitcoin’s value has halved since hitting an all-time high.
Investors are consolidating near lower levels when buying positions which can be confirmed with higher volumes.
On the other hand, if Bitcoin fails to sustain the breakout of the descending sloping line, the coin may retreat towards $36000 levels.
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