Bitcoin Reclaims $48,000 Mark, Eyes $50,000 for New Bull Run
Bitcoin (BTC) has regained positive sentiment and is currently trading above the $48,000 mark for the first time since the launch of the spot exchange-traded fund (ETF). Market participants are now looking towards Bitcoin potentially retesting the $50,000 level, which is seen as crucial for triggering a new bull run.
Crypto analyst Alan Santana recently outlined a possible path for Bitcoin to reach a new record high of $80,000. Santana’s analysis focused on Bitcoin’s Moving Average Convergence Divergence (MACD), which indicates a shift towards a bullish trend.
One notable observation is the successful breach of a local down-trendline from December 2023, signaling a potential reversal of previous bearish momentum. This upward trend showcases Bitcoin’s resilience in the market.
Possible Downside for Bitcoin
If Bitcoin faces a downturn, it could temporarily stop in the $30,000 – $34,000 range before experiencing a brief bounce. However, Santana warns that this rebound may be short-lived, with Bitcoin potentially descending to $27,000.
Santana explains that at $27,000, panic selling may occur, clearing out buy orders all the way down to $22K. This is where big players are expected to enter and buy up Bitcoins.
Overall, Bitcoin is currently experiencing positive sentiment as investors anticipate a sustained rally. It’s worth noting that following the ETF approval, there was a significant sell-off that led Bitcoin to retest the $38,000 mark. The sell-off was mainly due to outflows in the Grayscale Bitcoin Trust ETF.
The ETF has completed its first 20 trading sessions since approval and has reached $10 billion in assets under management (AUM). The valuation is expected to increase as more institutions enter the ETF space.
The current positive momentum in the crypto market is returning after the decline in GBTC outflows. Additionally, there is renewed optimism surrounding the upcoming halving event scheduled for April.
Bitcoin Price Analysis
At press time, Bitcoin is trading at $48,173, reflecting a daily gain of over 2% and a 12% increase over the past seven days.
Bitcoin’s technical indicators suggest a bullish outlook. The one-day gauges from TradingView show a ‘buy’ sentiment at 14 and moving averages indicating a ‘strong buy’ at 13. However, oscillators recommend a ‘neutral’ stance at 8.
While Bitcoin seeks to sustain its rally, it remains susceptible to factors such as interest rates and the overall state of the economy.
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