Bitcoin (BTC) Price Increases Above $50,000

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Today, Bitcoin’s (BTC) price reached a new year­ly high above $50,000.  This is the high­est price since Decem­ber 2021.

The upward move­ment took Bit­coin above a long-term hor­i­zon­tal and Fib retrace­ment resis­tance level.

Bitcoin Negates Bearish Candlestick

Bitcoin’s price has increased at an accel­er­at­ed rate since Octo­ber 2023. Ini­tial­ly, the upward move­ment led to a high of $48,969 in Jan­u­ary 2024. The ensu­ing decrease cre­at­ed a bear­ish can­dle­stick (red icon) and val­i­dat­ed a long-term hor­i­zon­tal and Fib retrace­ment resis­tance level. 

While the rejec­tion cat­alyzed a near­ly month-long down­ward move­ment, BTC regained its foot­ing in the past three weeks and reached a new year­ly high of $50,368 today. The high was made above the hor­i­zon­tal and Fib resis­tance lev­el men­tioned before. The impor­tance of this resis­tance can­not be over­stat­ed since it is the final one before the all-time high region.

Bitcoin (BTC) Price Movement
BTC/USDT Week­ly Chart. Source: Trad­ingView

The week­ly Rel­a­tive Strength Index (RSI) gives con­flict­ing read­ings. Traders uti­lize the RSI as a momen­tum indi­ca­tor to assess whether a mar­ket is over­bought or over­sold and whether to accu­mu­late or sell an asset. 

If the RSI read­ing is above 50 and the trend is upward, bulls still have an advan­tage, but if the read­ing is below 50, the oppo­site is true. While the RSI is above 70 and increas­ing, a poten­tial bear­ish diver­gence is devel­op­ing, depend­ing on the week­ly close.

What Are Analysts Saying?

Cryp­tocur­ren­cy traders and ana­lysts on X pos­i­tive­ly view the future BTC trend. 

Cred­i­ble­Cryp­to not­ed the BTC Dom­i­nance Rate (BTCD) break­out has pre­vi­ous­ly pre­ced­ed sharp increas­es in the BTC price. They also not­ed that BTCD is in the process of break­ing out. 

Bitcoin BTCD Chart
BTCD Dai­ly Chart. Source: X

TechDev_52 uses Elliott Wave the­o­ry to pre­dict the price will increase to $130,000.

Tech­ni­cal ana­lysts employ the Elliott Wave the­o­ry to iden­ti­fy recur­ring long-term price pat­terns and investor psy­chol­o­gy, which helps them deter­mine the direc­tion of a trend.

Bluntz_Capital gives a sim­i­lar out­look, though he uses a short-term count to pre­dict the future movement.

Elliott Wave Count Analysis
BTC/USDT 4‑Hour Chart. Source: X

Final­ly, Inmor­tal­Cryp­to not­ed that the BTC price will ral­ly sig­nif­i­cant­ly after the halv­ing in April, as it has done in the pre­vi­ous bull cycles.

Mat­teo Gre­co, research ana­lyst at Fineqia Inter­na­tion­al, believes that the inflows into the spot Bit­coin ETFs are the pri­ma­ry dri­ver of this growth. 

“The pri­ma­ry dri­ver behind this price appre­ci­a­tion can be attrib­uted to the increased inflow into BTC Spot ETFs. In the past week, total out­flows from GBTC amount­ed to approx­i­mate­ly $415 mil­lion, trans­lat­ing to a dai­ly aver­age of about $83 mil­lion. This rep­re­sents near­ly an 85% reduc­tion in out­flows com­pared to the first two weeks of trad­ing” Gre­co stated.

Fur­ther­more, Mr. Gre­co said that there is a cor­re­la­tion between the reduced out­flow from the Grayscale Bit­coin Trust (GBTC) and the increase in inflows of the Bit­coin spot ETFs. He not­ed that the influx into BTC spot ETFs start­ed on Jan­u­ary 26, align­ing with the reduc­tion of out­flows from GBTC.

BTC Price Prediction: Will February be Bullish?

The cor­re­la­tion between BTCD break­outs and the BTC price is very inter­est­ing. Since the start of 2023, there have been three BTCD break­outs (green trend lines), includ­ing the cur­rent one. 

The two pre­vi­ous break­outs led to 25% and 80% increas­es, respectively.

Both times, the BTC price took some time until it exceed­ed its pre­vi­ous high. How­ev­er, it has already done so in the cur­rent move­ment. This could sig­ni­fy that the ensu­ing upward move­ment will be sharp­er than the pre­ced­ing ones.

Dominance Rate (BTCD)
BTCD Dai­ly Chart. Source: Trad­ingView

Return­ing to the week­ly time frame, a range between $30,000 and $60,000 can be drawn, where BTC has trad­ed for most of the past three years.

Last week’s increase took the price above the midrange (white) of $46,000. This is a sign often fol­lowed by an increase toward the range high, which in Bitcoin’s case is at $60,000, 20% above the cur­rent price, well in line with pre­vi­ous BTCD breakouts.

Bitcoin (BTC) Movement
BTC/USDT Week­ly Chart. Source: TradingView

Despite this bull­ish BTC price pre­dic­tion, a week­ly close below $46,000 will inval­i­date the break­out. Then, the price can fall 20% to the clos­est sup­port at $40,500.

For BeIn­Cryp­tos lat­est cryp­to mar­ket analy­sis, click here.

Dis­claimer

In line with the Trust Project guide­lines, this price analy­sis arti­cle is for infor­ma­tion­al pur­pos­es only and should not be con­sid­ered finan­cial or invest­ment advice. BeIn­Cryp­to is com­mit­ted to accu­rate, unbi­ased report­ing, but mar­ket con­di­tions are sub­ject to change with­out notice. Always con­duct your own research and con­sult with a pro­fes­sion­al before mak­ing any finan­cial deci­sions. Please note that our Terms and Con­di­tionsPri­va­cy Pol­i­cy, and Dis­claimers have been updated.



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