“Bitcoin’s upward momentum is captivating investors as it nears the $40k mark, sparking excitement and speculation about the possibility of a breakthrough in the cryptocurrency’s value.”
A strong support between the 0.786 and 0.886 Fibonacci levels may drive another increase in Bitcoin’s price, according to market analyst CRYPTOHELL. By analyzing the Fibonacci levels, CRYPTOHELL predicts that Bitcoin has the potential to reach between $44,000 to $47,300. Typically, if BTC hits the 0.786 or 0.886 Fibonacci level, it indicates solid support and a breakout is likely, potentially pushing Bitcoin above $40,000.
Macro factors, such as the possible approval of a spot ETF, also contribute to the bullish thesis for Bitcoin. Traders in both the spot and derivative markets are not aggressively selling their supplies in large quantities, as shown by the Bitcoin Exchange Flow. This suggests that accumulation is taking place, which could further drive up the price of BTC.
The Bitcoin liveliness metric, which measures the activity of long-term holders, has significantly decreased, indicating more accumulation. This, combined with the current ETF narrative, could lead to another price increase for Bitcoin.
Technical indicators, such as the Exponential Moving Average (EMA) and the golden cross formation, also suggest a bullish trend for Bitcoin. The crossing of the 20 EMA over the 50 EMA is a bullish signal, indicating that BTC may reclaim $35,000 and potentially approach $40,000. Additionally, the golden cross formation, where the 50 EMA is above the 200 EMA, establishes a new uptrend for Bitcoin.
The Money Flow Index (MFI) further supports the potential price increase for BTC, as it shows a lot of buying pressure. With an MFI of 78.55, there is a chance for a price increase in the near future.
Overall, the technical analysis and macro factors indicate that Bitcoin may have the potential to reach $50,000 by the end of the year, providing optimism for holders of the king coin. However, it’s important to note that cryptocurrency markets are highly volatile and unpredictable, so these projections should be taken with caution.