As the crypto market enjoys a reawakening, Bitcoin’s (BTC) recent rally has caught the attention of investors and enthusiasts. The flagship cryptocurrency has made a notable 10-month high and breached the $30,000 mark, buoyed by an atmosphere of positive market sentiment. Amid ongoing economic uncertainties, investors are now eagerly awaiting Bitcoin’s next price trend and considering its potential impact on the broader market.
Bitcoin shows bullish indicators
Bitcoin’s recent upswing has been fueled in part by the global economy’s observed fall in inflation, raising expectations that central banks may soon switch policies towards more accommodative monetary policy.
In a remarkable run from April 9th to April 14th, Bitcoin’s price surged over 10% and posted its highest daily close in over a decade. While some pundits may argue that this rise indicates some degree of detachment from traditional markets, it’s important to note that both the S&P 500 and gold are hovering near their highest levels in half a year.
Additionally, Bitcoin’s impressive rally above $30,000 came as the US Dollar Strength Index (DXY) — a metric that measures the US currency’s performance against a basket of foreign currencies — plunged to its lowest level in a year.
According to on-chain firm BlockchainCenter, the Bitcoin rainbow chart seems to indicate that BTC may have started a fresh rally ahead of the halving. On April 15, the chart positions BTC in the “accumulate” phase after a period of consolidation within “essentially a fire sale” area.
As early as March 2020, Bitcoin emerged from the “essentially a fire sale” zone and traded below $6,000. This development marked a pivotal moment for the cryptocurrency, setting the stage for a price reversal that ultimately paved the way for the 2021 bull run. As a result, this uptrend saw BTC hit a staggering all-time high of almost $69,000. Therefore, Bitcoin could witness a potential uptrend ahead of the halving event.
Also Read: Bitcoin Whales Begin the Dump – Has the BTC Price Rally Undermined by the Bears?
Will Bitcoin Reach $33,000?
The bears are currently attempting to hamper the upside move by attempting to sink BTC price to its crucial $30,000 support level. If buyers fail to sustain the price above $30.5K, the value of BTC may fall well below the 23.6% Fib level.
If BTC price falls from USD 30,000 but manages to stay above the 20-day EMA at USD 28.7,000, it will increase the chances of a rally that surpasses USD 32.5,000 in a few days. If this threshold is breached, Bitcoin could shoot towards the $40,000 mark.
At the time of writing, the price of BTC is hovering around $30.4K and has dropped almost 1% in the last 24 hours. A reputable crypto analyst is suggesting that bitcoin could face a slight pullback soon and is testing support near $29,000. If the price of BTC holds firm above this level, it can generate enough buying momentum to push its value above $33,000.
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