An analyst subjects Bitcoin to a comprehensive technical analysis and discloses a potential market risk at $66k and a psychological level at $70k. 

He projects a short-term move to $80,000 or $90,000, while other analysts see Bitcoin hitting $150k by 2025. 

Bitcoin (BTC) shows a strong rebound momentum, rising directly from a recent downward trend below $60k to $66k at press time. This compensatory rise has eaten up the considerable decline prior to the halving event, surging by 5% in the last seven days and 66% in the last 90 days. 

Having broken key resistance levels, analysts remain optimistic about a bullish extension supported by ETF inflows and current technical indicators. The spot Bitcoin ETF yesterday, April 23 had a total net inflows of $62 million with Fidelity Wise Origin Bitcoin Fund recording a single day net inflows of $34.83 million.

A Crypto News Flash report also discloses that the BlackRock Bitcoin ETF IBIT has recorded 70 days of consecutive inflows for the first time since launch. This positions the cumulative total ETF market net inflows to $12.38 billion, signaling a positive outlook for the underlying asset, Bitcoin. 

Speaking on Bitcoin’s future move based on a provable technical analysis is analyst Miles. According to him, the current ability of the asset to hold a major support level at $59k is very crucial. He further stated that the price of $60k reminded him of when Bitcoin was trading at $20k in 2023. Interestingly, the asset made a swift move up the price curve to the current level. If this is replicated, Bitcoin could easily reach an unimaginable level thanks to the above-mentioned determinants coupled with the post-halving impact.

Would the Bull Market Start Soon?

To Miles, there could be a greater rally getting to the end of the year, specifically Q3 and Q4. However, he expects the Q2 to become the accumulation period, since the market is recovering from all the major dips. 

Also, Miles pointed at three key ranges that could be crucial for the market growth with $66k acting as a warning point for a potential market risk while the $70k point is identified as the psychological level. In all, the pivotal levels for Bitcoin that should be closely watched are $66,000, $60,000, and $71,000 to $72,000. Miles’ analysis further pointed out that a breakout above $65k implies an extension towards other crucial resistance levels at $68,000 to $69,000 and $73,000 to $74,000. Interestingly, many crypto analysts agree with the bullish projection with the Benchmark Company analyst Mark Palmer predicting $150k for Bitcoin by 2025. 

Contrary to this view, Markus Thielen, co-founder of 10x Research believes that no catalyst could drive the Bitcoin price up again. 

We don’t have the typical drivers anymore that really brought prices from the $40,000 to the $70,000 region.

According to him, the previous rally was triggered by the impact of the spot Bitcoin ETFs. However, the past few weeks have seen little to no new inflows due to investors moving past the euphoria of the January launch. 

I think a lot of the Bitcoin rally is maybe built on wrong expectations and again. I think what’s crucial is that these ETF flows didn’t stop out of the blue, they stopped around March 12 when the consumer price index and when the producer price index came out.

 

 

 

---

Filed under: Bitcoin - @ April 24, 2024 3:24 pm