The Return of “Big Money Algos” as BTC Tests $53,000
According to Bitcoin investor and crypto commentator Mike Alfred, the “big money algos” have made a comeback. He predicts that the world’s most valuable cryptocurrency will rally to record fresh February 2024 highs before retesting all-time highs. This surge is expected to occur before the network halves its miner rewards.
Bitcoin’s Uptrend Continues as it Approaches $53,000
On February 20, Alfred noted on Twitter that the “big money algos” had flipped on and the uptrend was still intact. At that time, BTC was heading towards $53,000 before slightly retracing to around $59,000.
Despite this retracement, the daily chart’s candlestick arrangement indicates that the uptrend remains strong. Analysts, including Alfred, anticipate that Bitcoin will continue to rise and break above the stubborn resistance level of $53,000. If this occurs, buyers are likely to push prices even higher towards $60,000 and potentially $70,000.
The Sustainability of the Uptrend Remains Uncertain
However, it is unclear whether the uptrend will be sustained. The breakout has encountered significant selling pressure with notable sell walls at around $53,000. Nevertheless, bullish investors are optimistic and hope for a decisive close above this psychological round number.
The consensus among investors is that Bitcoin will rise in value due to its status as both a medium of exchange and a store of value. Additionally, as the coin becomes deflationary after halving, historical performance suggests that prices will increase.
Bitcoin Traders Bullish as Billions Flow into the Industry
Despite recent volatility, optimism prevails in the Bitcoin market, particularly with increased institutional participation. Wall Street players have directed billions of dollars into Bitcoin through spot Bitcoin exchange-traded funds (ETFs), as evidenced by the significant amount of coins acquired recently.
The Future of Bitcoin Depends on Macro Factors
However, the continuation of the uptrend relies on various macro factors, including the monetary policy status in the United States. The decision by the United States Federal Reserve (Fed) regarding interest rates in March could either boost BTC as a store-of-value asset or cause prices to decline as capital flows into the US dollar.
Feature image from Shutterstock, chart from TradingView
Hot Take: Bitcoin’s Rally to New Highs Expected, but Sustainability Remains Uncertain
Bitcoin investor Mike Alfred predicts that the cryptocurrency will reach record highs in February 2024 before retesting all-time highs. The recent uptrend, fueled by “big money algos,” suggests that BTC may break above $53,000 and potentially reach $60,000 or even $70,000. However, it remains to be seen whether this uptrend can be sustained in the face of sell walls and other market factors.
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