Bitcoin (BTC) is surging in a wave of positive sentiment as it prepares to take in $ 50,000.
After a choppy weekend that saw an all-time high, expectations are putting Bitcoin back in the spotlight as the base level gets triggered – what’s in store?
Cointelegraph is studying five factors that could move the market in the coming days.
Stocks gain while the dollar is down
Equities are rising, based on a record high that has already seen more indices higher than ever before.
Despite warnings that good times could be over soon, including from Warren Buffett’s market index last week, markets started on Monday in the green.
Japan’s Nikkei index touched 30,000 points for the first time since 1990 with a growth rate of 1.6%.
Meanwhile, the strength of the US dollar continues to falter. The US dollar currency index, which measures the US dollar against a basket of trading partner currencies, gave up its recent bounce attempt over the weekend to test support at 90 again.
The index has been in a bearish mood for most of the past year, and Bitcoin, in turn, has gained from periods of outright weakness and experienced declines during the return of the opposite trend.
However, printing money in central banks in the long run ensures that the economic environment in many jurisdictions will not return to normal anytime soon.
In response to a Valentine’s Day post from the European Central Bank (ECB), Saifuddin Amous, author of the popular book “The Bitcoin Standard,” had little sympathy. The foundation promised to “maintain favorable financing conditions” until the crisis ends.
“This is why compulsive people spend their pitiful lives breathing more than one imagined crisis to another,” Answered.
“A lot of rrrrrr is made whenever there is a crisis!”
$ 50,000 or not $ 50,000? this is the question
When it comes to Bitcoin specifically, it’s (mostly) about the short term for investors this week.
One event in particular – how and when will the largest cryptocurrency break $ 50,000 – is the The subject of debate Across the industry.
The weekend produced a concerted effort to break the latest important psychological level, with the classic “off-hours” swing of volatility pushing to new all-time highs of $ 49,714.
With sellers lining up at the final hurdle, $ 50K eluded the bulls and the Bitcoin / USD pair slid lower before continuing to consolidate at around $ 47,000.
“Huh? # The bitcoin market is not rising in a straight line?” Michael Van de Pope, Cointelegraph Markets analyst, is not surprised Summarization on Monday.
Van de Poppe has repeatedly warned that Bitcoin’s vertical uptrend cannot continue without the multiple, and sometimes intense, downturns.
Meanwhile, on his own forecasts, fellow analyst filbfilb has produced a new chart with a potential BTC price at the end of the month of $ 78,000.
“The constant narration of good news that we’ve seen makes me think this is totally possible,” he said Added In the comments on Twitter.
“50 KB can easily be compressed, that’s what the size says anyway.”
Target expands filbfilb’s previous forecast of $ 52,000 to form the next point of consolidation before it reaches $ 63,000.
Non-naysayers feel the game is lost
Filbfilb’s “Good News Narrative” indicates an ongoing phenomenon that reminds us of the domino effect among the major institutions that are revaluing Bitcoin and the volatility of its upward trend.
In the past week alone, Tesla bought into big time, while America’s oldest bank, BNY Mellon, announced that it would provide cryptocurrency support for institutional clients. Now, the anticipation is focused on Morgan Stanley releasing rumors about a new Bitcoin bet that is allegedly involving his investment arm officially.
At the same time, opponents of its success appear to be increasingly despondent of their lack of ability to stop it by conventional means.
A prime example is Nigeria, which last week saw its politicians admit that bitcoin has ruined the value of its national official currency, the naira.
“Cryptocurrency has become a global transaction. You cannot even determine who owns what,” Senator Sani Moussa said She said.
“The technology is so powerful that I don’t see the kind of regulation we can do. It has made Bitcoin our currency virtually useless or worthless.”
The picture could not be more different than the fortunes of these people already, to a greater or lesser extent, on the “Bitcoin Standard”.
Even Tesla, which bought at the start of 2021, is already up 40% in a $ 1.5 billion Treasury turnover. Against the backdrop of the “Bitcoin Enterprise” summit held by fellow pioneer MicroStrategy earlier this month, similar stories are likely to follow.
The “striking” similarities point to the price of $ 274,000 BTC
As the Cointelegraph often points out, several simple and complex indicators point to the potential for the Bitcoin price to rise dramatically across timeframes.
Zooming out, however, the new data governing the spot price sheds light on what one analyst believes is an almost carbon copy of the previous bullish cycle.
“It’s pretty amazing that the Bitcoin scheme is so close to what it was in August 2017,” said Jack Purdy, a researcher at data provider Messari. chirp On Sunday.
“Does anyone need a reminder of what happened next?”
In response, Glassnode’s chief IT officer and co-founder Rafael Schultz-Kraft calculated that based on its current position in the course, BTC / USD has a position to go to $ 274,000 – an increase of 471% in line with the 2017 behavior.
Meanwhile, Glassnode has highlighted a distinct factor since recent Bitcoin support halved last year. Aside from some notable occasions, miners are selling less than they have been during previous rallies even though the spot rate is much higher.
“Previous bullish #Bitcoin markets are marked by the fingerprints of increased mining outflows from BTC in US dollars acquired over previous years,” Mention on Monday.
“Although we are seeing outflows slightly higher than the older BTC, this same pattern has not been seen in the current bull market.”
The largest weekly candle ever
Finally, to put last week’s price action in context, Bitcoin saw its largest weekly candle in history.
At 25%, or $ 9,800, Bitcoin has added a quarter of its value again over the past seven days. It follows various similar exploits, including the largest daily candle ever, earlier in February.
Against this strong performance, even the downward correction of $ 50,000 ago was not a major concern for analysts outside of the mainstream media on Monday.
“Heavy selling by larger derivative dealers resulted in a large split in CVD while the price of Btc rose in dollar terms (absorption of sellers by buyers),” filbfilb explained In a tweet.
“Funding continues to fluctuate high at resistance, so it may not be time to continue yet, but I am still optimistic.”
Filbfilb was signaling an increase in the rate of funding on major exchanges, causing traders to buy more to keep their positions near psychologically important price points.