Bitcoin (BTC) has been on a tear in the last ten days, with the price of the cryptocurrency soaring to six-week highs. After starting the year above $47,000, Bitcoin plunged below $34,000 on Jan. 24 and is now trading above $44,000, nearing the highest levels year-to-date. While there have been a few pullbacks along the way, the overall trend has been strongly upward since March 13, and many analysts believe that Bitcoin is on the verge of a major breakout.
There are several factors that could spark a sharp increase in the price of Bitcoin. One is increasing mainstream adoption. While Bitcoin still isn’t widely accepted by businesses, it is slowly gaining traction, and more and more people are aware of it. Another factor is increasing institutional investment and a return of retail investors’ risk appetite in wider markets.
Technically speaking, the implication is that these factors in combination with Bitcoin’s current price action seem to favor the bulls. If BTC remains above $44k, a break through the critical level of $45k followed by higher lows will signal a continuation to the upside. This in turn could set the stage for the crypto’s race higher into the $50,000 resistance level. A break over can get this moving towards $52k.
There could be some backing and fair value gap filling, but the direction of the trade should remain bullish as long as the $45K level holds. Therefore, this is the key area to keep an eye on for next week.
On the other hand, if the apex cryptocurrency fails to break through the $45k resistance level, it will invalidate the bullish thesis. The reversal, besides indicating a weak bull camp it’ll also push BTC down toward the $43,000 and then $42.500 support level. If the bearish pattern remains intact, a sharp decline towards the key $40k support level could follow. This development could potentially trigger a test of the $38,000 area.
Bitcoin Price Action
At last check, Bitcoin was trading at around $44,460, up 1.10%. The $844 billion market cap crypto traded in a range of $43,706 – $44,999 over the last 24 hours. BTC has been on a downward trend since its $69,000 peak in early November. Despite the fall, the digital asset – currently down more than 13% year-over-year, and up 16% month-over-month – has gained a whopping 4,486% from its value five years ago.
Disclaimer: The information provided is not trading advice