Bitcoin Finally Breaks Out of Its Range

The world’s most capitalised digital asset breaks out of its range to extend above $47,000

Bitcoin

Bitcoin (BTC) has just surpassed its yearly breakeven point of $47,200, reaching intraday as high as $47,650.

After pushing through the previous month’s high at $45,830, the apex coin broke out of its $35,000 – $45,000 3-month range, demonstrating its continued bullish momentum and growing stability as a top currency.

On Monday, Singapore’s QCP Capital said that the increase in BTC prices was due to Luna Foundation Guard‘s first purchase of bitcoin, worth $125 million. The network has stated through its CEO, Do Kwon, that it would be acquiring billions in bitcoin to Luna reserve.

“One notable buy flow this week was the 125 million USDT purchase of BTC by Luna Foundation Guard (LFG). This purchase is part of the plan to systematically accumulate a total of 3 billion USD worth of BTC as a reserve for TerraUSD (UST),” QCP wrote.

Although some naysayers continue to predict bitcoin’s demise, the crypto community is proving that it is here to stay. With each passing day, BTC becomes more ingrained in global finance and commerce. unquestionably, it is a valuable asset with immense potential. So far in 2022, BTC’s capitalization has outperformed every other major cryptocurrency by leaps and bounds. While price-wise there may be some volatility in the short term, bitcoin is on track to continue its exponential growth in the long term.

BTC has been on a tear in the last 12 days, with the price of the cryptocurrency soaring to six-week highs. With the fresh gains, bitcoin is now up more than 1% year-to-date. By comparison, the S&P 500 has declined by nearly 5% during the same period. The $895 billion market cap cryptocurrency has gained 25% month-over-month.

On technical basis, bitcoin price might revisit the $50k psychological level. A break over can get this moving towards $52k. Obviously, there could be some backing and fair value gap filling, but the direction of the trade should remain bullish as long as we consolidate above the $46K level. Therefore, this is the key area to keep an eye on for this week.

Meanwhile, and as expected, Ethereum’s Ether (ETH) also extended gains, adding more than 6% intraday to print above $3,345.

In a tweet over the weekend, cryptocurrency trader Michaël van de Poppe pointed out that ETH, the world’s second largest crypto by market value, is approaching an “interesting” level where he can identify “multiple areas of liquidity to be hunted, but also higher-timeframe resistance zone.”

Ether has been on a downward trend since its peak in early November. Despite the fall, the $402 billion market cap smart contract cryptocurency has rallied by more than 30% in just two weeks.

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