Is Bitcoin price about to hit $50K?

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Bitcoin’s (BTC) price broke through the crucial level at $40,500 as news of Tesla adding $1.5 billion in Bitcoin to their balance sheet. This news event pushed the price to new all-time highs, putting the next major resistance level at $50,000. 

What’s more, other cryptocurrencies are accelerating left and right as the landscape is ideal for altcoins to start moving. All-time highs are being established daily across many altcoins while Bitcoin is consolidating. But how long will this consolidation last? Let’s take a look at the charts. 

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Bitcoin price breaks key resistance on Tesla news

XBT/USD 4-hour chart. Source: TradingView

The 4-hour chart shows an apparent breakthrough of the $40,500, which was crucial for more upside as the Tesla news resulted in the biggest daily green candle ever for Bitcoin. 

As the chart shows, the next level of interest is the psychological barrier around $50,000. It’s also the next major Fibonacci level. The 1.618 Fibonacci level is often used as a crucial indicator to predict levels in price discovery.

BTC/USD 4-hour chart. Source: TradingView

Another important level to watch for Bitcoin is the order block around the $43,300-$43,700 area. Continuation to the upside is likely as long as that area holds. 

However, a sharp drop is likely to happen if Bitcoin’s price can’t hold this level. Falling through the $43,300-$43,700 area would generate a cascade of stop/loss triggers as the price of Bitcoin drops back in the range it acted in for several weeks. The next level of support can be found between $37,800-$38,500 if $43,300 fails to hold.