Bitcoin’s Weekly Close Sets Stage for Potential Recovery, Analysts Say
Bitcoin could be on the verge of a rebound as it lingers near the $42,000 level, following a week of volatile price fluctuations. The digital currency experienced significant gains towards the end of the week, boosting trader confidence in the possibility of an upward trend. Currently, BTC is trading at $41,849.15, representing a 0.39% decline from its intra-day high.
During the recent downturn, Bitcoin’s market capitalization and 24-hour trading volume experienced minor declines of 0.58% and 47.82% respectively, amounting to $820.62 billion and $12.95 billion.
Market analysts are closely observing Bitcoin’s performance, particularly with regards to its weekly close. Crypto market analyst Michaël van de Poppe shared his insights, suggesting that the recent dip in Bitcoin’s value, which had investors on edge for a 20% drop, may come to an end. Van de Poppe predicts a potential challenge for Bitcoin at the $48,000 resistance level, although he does not discount the possibility of a retracement to the mid to low $30,000 range before any significant upward movement.
Several factors are contributing to the current market sentiment surrounding Bitcoin. These include outflows from exchange-traded funds (ETFs), selling pressure from defunct exchanges like FTX and Mt. Gox, and anticipation of the upcoming block subsidy halving in April. Despite these challenges, van de Poppe remains optimistic about Bitcoin’s future. He foresees a consolidation phase between $37,000 and $48,000 in the coming months, which may provide an opportune moment for altcoins to shine.
Another analyst, Rekt Capital, highlights the importance of Bitcoin’s upcoming weekly close. A close above the $41,300 range low could signify a positive shift in momentum and potentially rescue Bitcoin from its recent slump. Macroeconomic factors such as US inflation rates and GDP growth also play a role in Bitcoin’s performance. Favorable data indicating manageable inflation rates has sparked hope for a less aggressive interest rate policy from the Federal Reserve, which could act as a positive catalyst for Bitcoin.
Overall, Bitcoin’s weekly close is being closely watched by analysts as it may provide insights into the cryptocurrency’s potential recovery. Various factors, both within the crypto market and in the broader economy, are anticipated to influence Bitcoin’s trajectory in the coming months.