Bitcoin (BTC) price is trading again above the $50,000 mark after two days of strong gains, following a drop of more than 20%.
Fundamentals and historical price behavior
Bitcoin experienced a correction over the past two days, with its price falling up to 23%. However, price levels appear to have stabilized and the market is attempting to resume the uptrend, pushing the quote back above $50,000.
The price recovery was supported by several factors, including comments from Cathie Wood, CEO of crypto-focused investment firm Ark Invest. She said she is “very positive about Bitcoin, very happy to see a healthy correction here.”
JUST IN: #Bitcoin rallied back above $50,000, aided by supportive comments from Ark Investment Management’s Cathie Wood https://t.co/zSyMGvGzQD
— Bloomberg (@business) February 24, 2021
Over the past week BTC posted a marginal loss of 0.93%, while ETH fell 7.51%. Bitcoin remains the largest cryptocurrency by market capitalization, valued at $945.79 billion (61.3% of the total cryptocurrency market capitalization).
At the time of writing this analysis, Bitcoin is trading at $50,400, representing a price increase of 34.86% compared with its value one month ago.
Daily BTC / USD analysis
After halting its decline, Bitcoin has found strong support at the 21-day EMA for two consecutive days. The cryptocurrency is attempting to recover from the recent drop, having climbed back above $50,000 and aiming toward $52,000.
Bitcoin faces significant resistance at the $52,200 level. In a bearish scenario, strong support could be found at the 21-day EMA and the 38.2% Fibonacci retracement level near $48,400.
The BTC daily RSI has returned to a normal trading range, currently reading 57.96.
Hourly BTC / USD analysis
On the 1-hour chart, BTC shows a current tug-of-war between the downward-sloping 21-hour EMA and the upward-sloping 50-hour EMA.
It is reasonable to say that once BTC clears the $50,000 level decisively, the probability increases that the rally will continue rather than trigger another corrective move. Many analysts expect momentum to push the price into a range between $53,100 and $53,500, depending on individual models and indicators.
Currently, BTC appears better positioned to break above the 50-hour EMA and challenge the $52,213 level, and potentially surpass it.