BTC/USD rises to all-time high of $50,000 – now correction to $42,000?

Last night, the Bitcoin price once again reached an all-time high. On the crypto exchange Binance, BTC/USD was able to break the magic mark of 50,000 dollars for a moment and thus continue the past weeks’ bull market. At the beginning of the month, BTC/USD was still trading around $30,000 after a significant correction. Since then, the most valuable cryptocurrency has risen again by approximately 65 percent. The recent rise was triggered by electric car maker Tesla’s investment in the crypto market. Elon Musk’s company has invested $1.5 billion in Bitcoin and also plans to accept Bitcoin as a means of payment itself in the future.

At the time of publication, BTC/USD is trading at around $49,000. However, the technical analysis shows that Bitcoin is currently not yet in a significant downtrend, and the chances of a renewed attack on the $50,000 are still given.

Thus, a so-called ascending triangle has formed in the bitcoin price. About a week ago, BTC/USD entered this formation at a price of around $42,000 and had since touched the triangle’s upper and lower lines several times. Taking a closer look at the pattern, a breakout from the formation is expected by the end of the month. However, it is unlikely that BTC/USD will stay in the ascending triangle for that long. Usually, the breakout takes place before the upper and lower trendlines cross. Accordingly, the next bullish move or correction could be imminent as early as these days.

From the triangle, technical analysis can determine possible price targets for bitcoin. If BTC/USD breaks out to the upside, the price could rise to a new all-time high of around $55,000. On the other hand, if the bitcoin price corrects downwards, the entry point into the technical formation at $42,000 is a possible price target. Traders who want to profit from one of the two scenarios can expect a price movement of 10 to 15 percent. With appropriate leverage, bitcoin can increase possible profits significantly accordingly. However, new investors should first learn how to trade before committing their capital to it. The risk of high losses is high for beginners.

Even with technical analysis, it is impossible to predict which of the two scenarios will occur in the end. However, if one only follows the general principles for chart patterns, the ascending triangle is considered a bearish formation. If one follows this approach, a correction is more likely than a further breakout to the upside.