Bitcoin (BTC) is currently facing a crucial resistance to breakthrough afterwards a massive rally of 70% since the recent low in July at $28,000. This resistance is plant in the psychological expanse betwixt $50,000 and $51,000 and tin can be classified as the final hurdle earlier a new all-time loftier.

This correction started when Michael Saylor revealed that MicroStrategy had purchased another $177 million worth of Bitcoin, while the company is already one of the largest holders of Bitcoins.

The market place hasn't seen any correction since the recent bottom at $28,000, through which a potential correction might be on the horizon.

Bitcoin facing crucial resistance to breaking through at $51,000

BTC/USD 1-twenty-four hours chart. Source: TradingView

The daily chart of Bitcoin shows an apparent resistance is coming upwardly. The $51,000 level is crucial for the markets to interruption through, as that level was the significant Due south/R flip earlier the heavy crash occurred in May.

If the markets cannot laissez passer this level, a correction for the unabridged market is likely to happen. That's not unexpected, however, equally the altcoin market is showing signs of overheating.

Aslope that, the chart shows a potential bearish divergence could be opening upward, which ofttimes precedes a correction.

Given the significance of the $51,000 level, this expanse is the final hurdle before a large run toward the all-fourth dimension loftier is likely to take place. If the $51,000 resistance breaks, a brusk squeeze to $57,000–$59,000 becomes likely. Yet, given the contempo correction, a further corrective movement is most probable going to happen.

The crucial level to watch for a potential breakdown is the entire region around $44,000. That level marked a new college low in the current structure and is the most likely level to support the markets if a farther and broader correction occurs.

Aside from the $44,000 level, the side by side level of support tin be institute around the $forty,500 area, as that's the previous high. Overall, the market shouldn't exist dropping beneath $37,500, equally that'due south the final breaker before new lows are on the tabular array. For now, a rejection at the $51,000 resistance level may open up the gates for more do.

Total crypto market place cap faces an of import level

Total crypto market place capitalization 1-mean solar day chart. Source: TradingView

The total crypto market capitalization has been on a huge run since the recent depression at $i.two trillion. Since and so, the market has been surging by more than 70% to a high of $2.1 trillion.

This contempo loftier at $two.one trillion is the final resistance earlier the marketplace tin run into a breakout to the upside. Next to that, a potential bearish difference is also starting to emerge on the chart also, calling for a possible short-term reversal to happen.

Based on the electric current chart, the post-obit levels of support are found at the zone around $ane.75 trillion, as that's the contempo compression expanse. Moreover, information technology'southward besides a recent high.

Such a high could mark a potential new range to be established. If the level around $1.75 trillion doesn't sustain support, a further correction toward $1.55 trillion would still non be out of the books.

Notwithstanding, this entire correction will be invalidated with an credible breakthrough above $2.one trillion. If such a quantum happens, the chances of the markets continuing to new all-time highs in a higher place $2.five trillion are probable to occur.

Crucial support at $48,000 for Bitcoin on lower timeframes

BTC/USD 2-hour nautical chart. Source: TradingView

The ii-hour nautical chart for Bitcoin shows a crucial level to sustain for the market to continue its upward trajectory. If the area at $48,000 doesn't grant support, Bitcoin's price will fall back into its previous range.

That previous range had ample support at the $44,000 area, and that's most likely going to generate the side by side surface area of support for this unabridged correction. Nothing is for certain, but the moment Bitcoin loses $48,000, a cascade of stop/loss triggers could happen, which may outcome in a potential driblet toward $44,000.

This could, of grade, hurt the altcoin market. However, traders and investors should understand that the market goes up in waves. In uptrend cycles, particularly the big ones we've seen recently, corrections are to be expected before a new impulse motility can happen.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risk. You should comport your ain inquiry when making a decision.