Bitcoin Price Approaches All-Time High, is a New Record Ahead?

BITCOIN (BTC/USD) PRICE OUTLOOK:

• Bitcoin briefly broke beneath $45,000 before bulls rushed in to ward off further declines
• The recent recovery has helped repair the technical landscape as bulls look to push price higher
• Bitcoin Price Forecast: BTC/USD Pushes to New Heights Amid Corporate Adoption

BITCOIN PRICE APPROACHES ALL-TIME HIGH, IS A NEW RECORD AHEAD?

Bitcoin suffered a notable setback last month as price fell from its record near $58,000 to the $43,000 zone in just a few sessions. While significant, we noted at the time that such a pullback could serve as healthy consolidation in the longer-term as months of remarkable gains left BTC/USD overbought. Losses have since been reversed and the technical landscape has improved with newfound support along an ascending trendline projection that could help Bitcoin take aim at new highs.

BITCOIN (BTC/USD) PRICE CHART: 4 – HOUR TIME FRAME (DECEMBER 2020 – MARCH 2021)

To that end, bulls may look to test the $58,000 area in coming sessions as little resistance lies between the current trading price and new highs. In the immediate future, a rising trendline from Bitcoin’s January peak may look to keep BTC/USD contained. That said, bulls have already begun to probe the level and a break above the trendline could see resistance turn to support.

BITCOIN (BTC/USD) PRICE CHART: 1 – HOUR TIME FRAME (JANUARY 2021 – MARCH 2021)

Either way, the technical landscape has improved considerably as Bitcoin was able to avoid a series of lower lows and lower highs. A new record above $58,000 would establish yet another higher high which would likely open the door for further gains.

Nevertheless, Bitcoin has a penchant for volatility and losses can mount as quickly as gains, a fact traders should carefully consider. In the meantime, keep up to date on recent price developments and analysis using Twitter by following @PeterHanksFX.

–Written by Peter Hanks, Strategist for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX