Bitcoin price (BTC) surpassed the $ 40,500 critical level when Tesla added $ 1.5 billion bitcoin to its balance sheet. This news event pushed the price to constant highs, setting the next important resistance level at $ 50,000.

In addition, other cryptocurrencies are accelerating left and right as the scene is perfect for launching altcoins. Historic highs are set daily for many altcoins, while Bitcoin is standardized. But how long will this communication last? Let’s look at the charts.

Bitcoin Price Breaks Major Resistance in Tesla News

The 4-hour chart shows a clear breakout of $ 40,500, which was decisive for further growth as Tesla News gave Bitcoin the biggest daily green light.

As you can see from the diagram, the next level of interest is the psychological barrier of about $ 50,000. This is also the next big Fibonacci level. The Fibonacci level of 1.618 is often used as an important indicator for predicting price opening levels.

Another important level to watch out for in bitcoin is block orders in the $ 43,300-43,700 region. The bullish trend is likely to continue as long as this area remains.

However, a sharp decline is likely to occur if the bitcoin price fails to maintain this level. Entering the $ 43,300 to $ 43,700 area will create a series of stop / loss triggers as bitcoin’s price drops again in the area it has been working in for several weeks. The next level of support can be found between $ 37,800 and $ 38,500 if $ 43,300 is not held.

A weak dollar feeds the cryptocurrency market

The Dollar Strength Index (DXY) shows weakness after a temporary low of 90 points. This bottom shape was characterized by a bullish divergence that resulted in a slight rally. The rally ended at 91.60 points and made a complete reversal.

The main question for the DXY will now be whether the audio signal will hold up to 90. In this case, the bullish rejection still persists and a new test could be done at 92. Such a rebound is likely to change the cryptocurrency market.

However, if the DXY Index continues its downward trend, the cryptocurrency market won’t be much in the way of hitting higher highs and BTC hitting $ 50,000.

The total market value of cryptocurrencies is expected to reach $ 1.5 trillion.

The total market value of a cryptocurrency shows strength when it surpasses the previous high. There was only a minor retesting of $ 730 billion followed by an almost vertical movement.

The Fibonacci extension tool now shows that the new point of interest is now $ 1.5 trillion as the chart shows.

The question is whether the market is ready to continue moving from here to the next potential point of interest of $ 2.1 trillion. If the market corrects, which could happen if Bitcoin loses $ 43,300 – $ 43,700, traders should watch the $ 1.05 trillion level for a potential rebound.

Source: CoinTelegraph