Bitcoin Bulls Push Price Above $50,000
The price of Bitcoin (BTC) has surged above $50,000, causing significant losses for Bitcoin bears. This comes after BTC posted its strongest weekly close since December 2021. Last week, Bitcoin gained 13.5%, marking its largest weekly percentage gain since October. The price of BTC has risen by approximately 100% since September 2021.
Bitcoin Bears Blown Out of the Water
Bitcoin bears who celebrated the dip below $40,000 last month have been proven wrong. The price of BTC has experienced a near-30% recovery since January 23rd, leaving the bears stunned. Additionally, spot Bitcoin ETFs saw $1.1 billion in net inflows last week, and the launch of these ETFs has been the strongest in history. CryptoQuant’s CEO predicts that BTC could reach $112,000 this year due to ETF inflows.
BTC Also Benefitting from These Tailwinds
In addition to ETF inflows, Bitcoin is benefiting from macro tailwinds such as record levels in US equity markets and the expectation of interest rate cuts by the Fed. Traders are also bidding up the BTC price ahead of the issuance rate halving. While a pullback is possible, bulls remain optimistic about a near-term test of resistance in the $52,000s.
Where Next for the BTC Price?
As Bitcoin reaches new highs, there are concerns about a potential pullback. The 14-day RSI for BTC is in “overbought” territory, and the rising “supply in profit” on-chain could be a warning sign of a market top. However, any pullbacks are likely to be aggressively bought into due to the bitcoin price tailwinds mentioned earlier. Bitcoin bears are expected to continue suffering in the medium term.
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