Here’s How Bitcoin’s Path to $50K Can Look in the Coming Week

Key Insights:

• Bitcoin currently has strong support at the $42,000 to $40,000 mark.
• On-chain metrics have mainly been bullish since the price recovered from the $37000 mark.
• BTC whale transactions have witnessed a spike.

Bitcoin’s journey took an exciting turn after recovering from the under $37000 mark. Over the last three weeks, BTC’s price trajectory has been largely bullish as the coin continued to make higher highs. However, the king coin has retraced its tracks back to the $43000 mark in the last three days.

So, with the recent drawdown in play, what are BTC’s chances of reaching $50,000?

Bitcoin Price Action

Bitcoin’s price took a downturn on April 6, making its way back to the $43,122 mark, with the $42,995 level acting as solid support. BTC’s bounce at a confluence of short-term support levels is expected to initiate a relief rally, leading to short-term gains for the top coin.

At the time of writing, BTC was still trading above the $43,000 area, which acted as support in November 2021 before turning to resistance in February 2022. The same level could serve as strong support in the future.

After gaining over 25% in March, bitcoin faced strong resistance at the $47,470 mark. For almost a week, from March 29 to April 5, BTC oscillated just under the critical $47,470 resistance level and dipped by nearly 10% in the following days.

Notably, BTC’s daily RSI lost value, indicating sellers taking over buyers in the spot market. However, the MACD is still bullish as it generated three successive higher momentum bars and was still in positive territory.

Bullish Divergences

Once bitcoin reclaims the yearly open at $47,276, it has chances of upside. BTC’s price uptick in the near term can propel the price to retest the 200-day SMA at $48,249. However, bears will defend this high resistance cautiously.

In case of bullish momentum regaining strength, BTC could rise to the $50,000 psychological level. A massive surge in buying pressure supported by a price rise in the near term can cause BTC to produce a decisive close above the significant $50K level.

Data from Santiment highlighted that bitcoin had recovered mildly from its drop below $43.1K. The data analytics website’s model indicated a bullish divergence between the amount of unique BTC moving on its network vs. current market cap levels.

Furthermore, the most significant spike in whale transactions in April was seen today. There were 1,146 BTC moved, valued at above $100K.

If whales start accumulating, another positive push in price could be spotted in the short term.