Bitcoin (BTC) , the king of crypto, saw a 6% rise with prices hitting $57,000 for the first time since November 2021.
The price increase began with BTC breaking through the $53,000 level, then rising above $54,000. After that, the price continued to advance to levels of $55,000, $56,000, and finally $57,000, according to CoinMarketCap data.
The surge sparked significant activity in spot Bitcoin exchange-traded futures (ETFs) , with trading volume hitting a record high of $2.4 billion on Monday.
Yesterday, MicroStrategy Incorporated announced it had added to its Bitcoin holdings by acquiring approximately 3,000 BTC worth $155.4 million in cash. This further confirms the company's confidence in Bitcoin as a valuable digital asset.
This acquisition, which was made between February 15 and 25, 2024, shows MicroStrategy's continued belief in Bitcoin as a valuable digital asset.
Check Today's Crypto Market:
Analysis of Bitcoin Price Rise to $57,000
Bitcoin surged again drastically, defying various bearish signals that previously indicated a potential correction.
Despite these warnings, the price managed to break through an important resistance level that remained for several months. This indicates the strength of buyers in the market and the potential for the current trend to continue.
1. Technical Analysis
Daily chart observation shows a continued Bitcoin bullish trend, with strong buyer dominance. Recent price movements reflect high confidence among market participants, pushing cryptocurrencies past various crucial psychological resistance levels.
Increased buying pressure and strong bullish momentum have pushed the price beyond the upper boundary of a multi-month ascending channel, which was previously a strong barrier to price upside. This breakout triggered a short-squeeze event, triggering a series of buy-stop orders. As a result, in the event of a pullback to the broken trendline, the price is expected to resume its bullish momentum, targeting the significant resistance zone of $58,000.
On the 4-hour chart, we see a period of calm price movement near the key resistance level of $52,000, followed by a surge in bullish momentum that broke the mark decisively. This rapid rise indicates strong bullish sentiment among market participants, with many anticipating further increases in Bitcoin's value throughout 2024.
However, caution remains necessary as the price approaches the upper limit of the multi-month ascending channel in the 4-hour time frame, which is an important barrier for Bitcoin buyers. Given the recent acceleration in bullish momentum, a minor correction seems likely in the short term, potentially leading to a pullback to the $52,000 level.
Overall, Bitcoin's current outlook remains bullish, albeit with the possibility of a minor correction.
Also Read: Mining Bitcoin vs Validating Bitcoin Transactions
2. On-Chain Analysis
On-chain analysis uses the “Realized Price – UTXO Age Bands” indicator which provides valuable insight into the average purchase price based on BTC holding period.
The latest data from this indicator shows that the average purchase price of the group that invested during the previous cycle's bull run rally has significantly exceeded previous levels, especially among 2-3 year holders who had an average purchase price of $48.8K. Interestingly, this group also holds the largest portion of Realized Cap (%) at 24%.
In essence, investors who started holding Bitcoin during the previous cycle's bull run, especially those in the 2-3 year bracket, established significant price resistance levels. However, with Bitcoin prices surging to $57,000, it appears the only remaining resistance level ahead is the recent cycle peak at $70,000.
Looking ahead, buying pressure from US institutional investors is expected to strengthen, especially with the introduction of spot Bitcoin ETFs. Even in the event of a market downturn triggered by unexpected macroeconomic or cryptocurrency-specific factors, Bitcoin's resilience suggests that the price dip is likely to be only temporary, like a compressed spring.
Also read How to Buy Crypto:
Also Read:
What is Zeon (ZEON)? New Opportunities in the Blockchain Era
Coin Metrics Claims BTC and ETH Are Immune to Attacks
AMD Teams Up with Wormhole to Support Blockchain Interoperability
DISCLAIMER : This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.