The price of bitcoin appears to be consolidating below $44,000, with analysts predicting that the next short-term bull objective would be $48,000.
Despite global developments, investor mood in the cryptocurrency ecosystem has shifted significantly in the positive direction during the last week. Bitcoin (BTC) is currently trading above $43,500, and numerous altcoins are also seeing double-digit gains.
The current turmoil in Ukraine, as well as recent government measures to restrict access to financial services, may have heightened awareness of the importance of cryptocurrency holdings, which provide some security against unpredictable events and what some may regard as government overreach.
As the globe waits for a resolution to the current problems, data from various analysts shows that the price of Bitcoin has fluctuated between $43,350 and $45,400 on March 2.
Here’s what a few analysts have to say about Bitcoin’s recent price activity and where it might go in the next weeks.
The accumulating of bitcoins has begun.
According to crypto expert and pseudonymous Twitter user Rekt Capital, who provided the following graphic indicating the decreased demand in the current price range, Bitcoin’s sideways price action has been significantly driven by the fact that the top cryptocurrency “has entered a volume gap.”
According to Rekt Capital,
“Volume Gaps tend to be completely filled. Major Volume Gap resistance lurks ahead at $48,000, which also happens to be the macro range’s mid-point.”
Ki Young Ju, CEO of the on-chain analytical business CryptoQuant, gave evidence suggesting the price is going to rise. The “BTC accumulating phase,” according to Ki, has begun.
According to Ki, “newbies who joined last year are transforming into long-term investors,” as the market valuation for Bitcoins older than six months now accounts for 52 percent of the total market cap, up from 13% at the recent cycle top.
“, he further explained.
“Unlikely to approach the previous low ($28,000) since the beginners would wait for more newbies in the next cycle,” says the analyst.
The next significant driver could be an increase in interest rates.
David Lifchitz, managing partner and chief investment officer at ExoAlpha, provided a more in-depth analysis of the impact of current events on the cryptocurrency market, noting the hard bounce in BTC from $37,000 to $44,000 “in the couple of hours following Russian President Vladimir Putin’s announcement of a national ban on foreign FX transfers.”
According to Lifchitz, the swift upward movement “stalled at $44,000, which coincided with the 100-day moving average and is also near the top of the $33,000-$45,000 band in which Bitcoin has been trading for weeks.”
Lifchitz believes the $45,000 resistance will hold for the time being, but that the “next hurdle” at $51,000 is still in the way before BTC can attempt to break through to its all-time high of $64,000.
Lifchitz predicted that “BTC may fall down a bit around the middle of its $33,000–$45,000 range” in the short term, and that “it’s tough to imagine BTC breaking over $45,000 and then $51,000 without some substantial catalyst.”
According to Lifchitz,
“On March 16th, the FOMC will determine whether or not to raise interest rates. A rate hike technically “strengthens” the USD, which “weakens” BTC in the BTC/USD pair, therefore it will be fascinating to observe how BTC reacts if the FED raises rates in two weeks, but the impact on BTC may not be drastic.”
It’s a “possibility” to accumulate vertically.
Analyst and pseudonymous Twitter user Altcoin Sherpa gave a final piece of historical context for BTC’s performance, posting the chart below, which shows that the current range has been a strong support and resistance zone since last May.
“I’m keeping an eye on $40,000 to see if we get a pullback. If September is any indication, we’ll see vertical buildup and Bitcoin won’t dip significantly (except on very short time frames) for a while. I’m guessing I won’t be able to receive this in the near future.”
The total cryptocurrency market capitalization is currently $1.924 trillion, with Bitcoin commanding 43.2 percent of the market.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.