© Reuters Bitcoin (BTC) welcomes first major break above $41,000
U.Today – The digital currency ecosystem has recovered from last week's sharp decline, with the combined crypto market cap rising to $1.61 trillion after rising 3.69% in the last 24 hours. As expected, (BTC) is leading the momentum after rising 3.97% to $41,688.27, marking the first major break since breaking through the $41,000 resistance point.
Bitcoin price experienced a relatively long period of decline and has not retested the $43,000 price mark as part of a bearish takeover since January 12th. The selloffs coincided with spot Bitcoin exchange-traded funds (ETF) products being approved by the U.S. Securities and Exchange Commission (SEC).
The creation of the product brought an unexpected twist as investors withdrew funds from the Grayscale Bitcoin Trust (GBTC) to other issuers because the fees were too high. The movement of funds was seen as a major liquidation event that rocked markets and caused investors to dump their Bitcoin holdings.
At the time of writing, the outflow of funds from GBTC has been relatively slower, helping Bitcoin maintain a grip on the $41,000 support zone.
How high can Bitcoin go?
Bitcoin is currently trading for $41,688.27. Its potential for further growth lies in various factors involving both fundamental and technical considerations. From a technical perspective, the BTC/USDT daily chart shows a relative strength index of 47.71, showing that the coin is far from being bought and is trending upwards.
1D chart via TradingViewThe RSI is complemented by the Bollinger Bands as the current Bitcoin outlook shows a trend reversal to the upside. This impetus for further growth can be solidified when spot Bitcoin ETFs fully stabilize and see less outflow.
In the longer term, the hype surrounding the upcoming Bitcoin halving is likely to shape sentiments that can further help BTC achieve its big breakthrough. According to predictions, Max Keizer sees an immediate short-term target for the coin at $50,000.
This article was originally published on U.Today
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