Bitcoin awakens, but "until it's above $50,000", it's not possible to claim victory

Bitcoin is once again trying to rise above $42,000 on Tuesday, a price level that it exceeded over the weekend. Despite sending signs of exhaustion on Monday, the most traded digital currency in the world has regained momentum to try again with this area of resistance, although experts warn that, despite the good feelings, until it does not attack $46,000, the rises are embedded within the consolidation of prices in which the digital asset has been encased for some weeks.

As for the rest of the market, Ethereum, Cardano, Avalanche and Polkadot are also in the green, with rises of between 3% and 5%, while the total capitalization amounts to $ 1.9 trillion. Ether - the unit of the Ethereum network - is once again standing up to the $3,000 resistance zone.

"The queen of cryptocurrencies, Bitcoin, has finally woken up and today we have seen its price rise. Like gold, Bitcoin is also seen as a hedge against inflation, especially since the supply of Bitcoin is limited," commented Naeem Aslam, head of analytics at AvaTradre.

As for the price's technical levels, the expert warned that "traders are likely to continue to watch the digital currency very closely as it begins its journey towards its real primary resistance of $50,000. "Only once Bitcoin´s price breaks above this key resistance level will we be able to say that the price narrative has changed dramatically now, and the odds are in favor of higher highs and higher lows. Until then, bearish sentiment is likely to prevail," he noted.

"All in all, the lack of catalysts for further upside calls for patience," stated Craig Erlam, analyst at Oanda.

"The underlying is moving within what is a symmetrical triangle (falling highs and rising lows). And until the price breaks through one side or the other, we will not have confirmation of what could be the next big move in the trend," explained José María Rodríguez, analyst at Bolsamanía. "As a short-term support zone we have the base of the triangle ($35,000) and as resistance the upper part ($45,300). However, until the price breaks clearly, we will have nothing at all. Everything will remain the same and we do not want to look for the 'excuse' to the movement of the day".

"What seems clear is that only above $46,000 (February highs) will the buy signals in Bitcoin be activated again. In the meantime, there is nothing to do here," he proclaimed.

From a fundamental standpoint, investors are awaiting the U.S. Securities and Exchange Commission's (SEC) decision to approve its first spot Bitcoin ETF. Yesterday, the agency stated that it would extend its window to make a decision on WisdomTree's Bitcoin investment vehicle. Having the approval of the spot Bitcoin ETF will really be a game changer for Bitcoin, and the fact that the SEC did not reject the decision this time has increased the odds of more positive news.