$50k Bitcoin Imminent? Several indicators point to a possible sharp breakthrough
As the 2023 Bitcoin (BTC) rally continues, the cryptocurrency recently hit a 10-month high above $30,000, benefiting from generally positive market sentiment. Investors are now anxiously awaiting the next price target for Bitcoin, especially with the ongoing economic uncertainty.
In this line, in a chirping on April 15, Stockmoney lizards, a pseudonymous cryptocurrency analyst, said the current gains are part of a pre-halving rally that mirrors the 2020 rally of around 320% after bottoming out. In both periods, Bitcoin has also achieved a Fibonacci retracement of 38.2%.
Looking ahead, the analyst noted that Bitcoin reaching $49,000 remains a “possible target for the next few months” based on historical price movements.
It is worth noting that the next Bitcoin halving is expected to happen in April or May 2024, when the block reward will fall to 3.125. The halving events are considered a bullish sentiment for Bitcoin.
Bitcoin’s new resistance levels
Bitcoin’s recent surge has emerged in part as the world economy is witnessing a slowdown in inflation, leading to expectations that central banks may soon shift their policies toward monetary easing. Therefore, crypto trading analyst Michael van de Poppe, in a chirping April 14 suggested that Bitcoin looks strong overall, but warned investors to expect “shallow corrections in an uptrend”.
“I have marked $31.7-32K as key resistance. However, $25K was the level everyone wanted to buy. This will likely shift to $28.5K and then no one will buy. I prefer to focus on $29.7K,” he said .
Elsewhere, the Bitcoin rainbow chart indicates that BTC may have embarked on another rally ahead of the halving event. According to the chart, as of April 15, BTC is currently in the ‘Accumulate’ zone after a period of consolidation in the ‘Basically a Fire Sale’ area.
Interestingly, this pattern is similar to an earlier trend in March 2020, days before the halving event. In March 2020, Bitcoin emerged from the ‘Basically a Fire Sale’ zone while trading below $6,000. This event marked a significant turning point for the cryptocurrency, triggering a price bottom that eventually led to a rise in value towards the 2021 bull run. Ultimately, this uptrend culminated in BTC reaching an all-time high of nearly $69,000.
The tool serves as a valuable resource for investors to track future Bitcoin price fluctuations. It uses color bands that follow a logarithmic regression and assesses the historical price performance of Bitcoin, providing insight into the asset’s long-term movements.
The latest Bitcoin gains come after the asset reacted positively to the banking crisis and the Federal Reserve’s interest rate hike, resulting in consolidation. At the same time, after the release of the non-farm payrolls report, which showed a decline in March, the market began to experience renewed bullish activity. Inflation data also indicated a drop in consumer prices in China, which helped push Bitcoin back above $30,000.
Bitcoin price analysis
At press time, Bitcoin was trading at $30,446 with small corrections of over 1% over the past 24 hours. On the weekly chart, Bitcoin is up almost 9%.
Meanwhile, Bitcoin’s one-day technical analysis, as sourced from TradingView, is dominated by bullish sentiment. A summary of the gauges is for “buy” at 14, while the “moving average” recommends “strong buy” at 13.
At the moment, Bitcoin supporters believe the asset is at a pivotal stage in its adoption journey, especially with the US dollar facing an onslaught over its status as the world’s reserve currency. Bitcoin’s ability to reach $50,000 will also rely on the broader economic trajectory and external factors such as regulatory outlook.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
