Bitcoin (BTC) is currently experiencing positive sentiments, reclaiming the $48,000 mark for the first time since the launch of the spot exchange-traded fund (ETF). Market participants are now eyeing Bitcoin’s potential retest of the $50,000 level, considering it crucial for triggering a new bull run.
In this context, crypto analyst Alan Santana, in a TradingView post on February 10, outlined a possible path for Bitcoin to reach a new record high of $80,000. Santana’s analysis focused on the daily Bitcoin Moving Average Convergence Divergence (MACD), indicating a shift toward a bullish trend.
Noteworthy observations include the successful breach of a local down-trendline originating from its December 2023 peak, signaling a potential reversal of the previous bearish momentum. According to the analyst, the trend is now upward, showcasing Bitcoin’s resilience in the market.
Currently facing resistance around the 0.786 Fibonacci extension, Bitcoin’s ability to overcome this obstacle is crucial for further advancement while identifying key resistance positions to look out for.
“The daily candles look pretty good, we are lacking only a bit of volume. We have five consecutive days green with a small distance being travelled. If Bitcoin can manage to conquer the upper resistance in the $47,500 – $49,500 price range, higher is possible… If this resistance can’t be broken, expect a major crash,” he said.
Possible downside for Bitcoin
Additionally, the trading expert pointed out that if Bitcoin faces a downturn, the crypto could hit a temporary stop in the $30,000 – $34,000 range, followed by a brief bounce. However, he cautioned that this rebound could be fleeting, with Bitcoin potentially descending to $27,000.
“The bounce will be short lived and then the next drop will push Bitcoin towards $27,000. At this point, people will start panic selling clearing out all the buy orders all the way down to $22K, where the big players will be waiting with their hearts open to buy all the Bitcoins,” he said.
Overall, Bitcoin is facing positive sentiments as investors anticipate a sustained rally. It is worth noting that following the ETF approval, Bitcoin experienced a significant sell-off that led the asset to retest the $38,000 mark. The sell-off was primarily attributed to outflows in the Grayscale Bitcoin Trust ETF.
As for the ETF, since the approval of the product, it has completed its first 20 trading sessions, reaching the $10 billion milestone in assets under management (AUM). The valuation is expected to increase as institutions enter the ETF space in the coming months.
Notably, the current positive momentum is returning to the crypto market after the decline in GBTC outflows. Additionally, there is a renewed sense of optimism, considering the upcoming halving event scheduled for April.
Bitcoin price analysis
By press time, Bitcoin was trading at $48,173, reflecting a daily gain of over 2%. Over the past seven days, Bitcoin has increased by more than 12%.
Elsewhere, Bitcoin’s technical indicators indicate a bullish outlook for the maiden cryptocurrency. A summary of the one-day gauges obtained from TradingView indicates a ‘buy’ sentiment at 14 while moving averages suggest a ‘strong buy’ at 13. However, oscillators are recommending a ‘neutral’ stance at 8.
In the meantime, as Bitcoin seeks to sustain its rally, the cryptocurrency remains susceptible to elements such as interest rates and the general state of the economy.
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