Bitcoin’s Recent Price Surge Sparks Bull Run Speculation
The recent surge in Bitcoin (BTC) prices has reignited excitement and confidence among investors, leading many to believe that a BTC bull run is gaining momentum. According to trader and crypto analyst Adrian Zduńczyk, Bitcoin has achieved a new 52-week closing high and has maintained a close above the previous high of $32,000 for three consecutive weeks. This sustained upward momentum indicates a strong bullish trend sentiment and signals the beginning of the third wave of the Bitcoin bull run.
Analyst Highlights Key Trends
Zduńczyk points out several dominant trends contributing to the positive outlook for Bitcoin. The rising 200-week and 50-week moving averages (MAs) emphasize the long-term uptrend strength, with key support levels at $28,800 and $26,600. Additionally, there is a growing correlation with the S&P 500, as evidenced by the 7-week correlation coefficient of 0.34. This alignment with traditional markets suggests that Bitcoin increasingly trades similarly to the Nasdaq.
Fundamental drivers also play a significant role in Bitcoin’s upward trajectory. Traders eagerly anticipate the approval of spot Bitcoin exchange-traded funds (ETFs) and the upcoming fourth halving event. Furthermore, according to Zduńczyk, historical patterns of previous halvings indicate that Bitcoin has rallied significantly after each halving and has never retraced to pre-halving prices.
Examining the daily trend, Zduńczyk highlights the technical strength demonstrated by Bitcoin’s reliable breakout above $32,000. Despite occasional volatility, the 50-day average true range (ATR) trend and the 50-day relative strength index (RSI) momentum trend are rising, indicating ongoing positive momentum.
Bitcoin Bullish Momentum At Risk?
However, renowned crypto analyst Ali Martinez points out that bearish divergence between Bitcoin’s price and network growth raises concerns about the overall strength of the current uptrend. While Bitcoin’s value has experienced significant gains, the number of new addresses created has decreased significantly.
At present, BTC is trading at $36,200, down 1.6% over the past 24 hours but still up a substantial 4.6% over the past 7 days. It remains to be seen if a surge in new addresses will be able to support BTC’s bullish momentum and break the current consolidation phase or if the cryptocurrency could retest support levels in the coming days.
Hot Take: Is Bitcoin’s Bullish Momentum Sustainable?
The recent surge in Bitcoin’s price has sparked optimism among investors and analysts alike. While technical indicators and fundamental drivers support a bullish outlook for BTC, concerns have been raised regarding potential weaknesses in its current uptrend due to bearish divergence between its price and network growth. As BTC continues its volatile journey, it remains uncertain whether it can maintain its bullish momentum or if it will face challenges in sustaining its current price levels.
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