Bitcoin Price Analysis: BTC Makes Steady Climb Towards $39,000
Daily Bitcoin BTC Price Forecast
- The 4-hour Bitcoin price chart has formed the bullish cross pattern with 20-bar and 50-bar SMAs.
- The MACD shows sustained bullish momentum in the MACD.
Over the last eight days, the Bitcoin price has jumped from $30,400 to $38,250. BTC managed to flip the 20-day SMA from resistance to support during this upward surge, while the parabolic SAR also reversed from bearish to bullish. With so many positive signs, let’s see what’s going on with Bitcoin behind the scenes.
Bitcoin Price Aims For $40,000
Bulls have been in control of the Bitcoin price for the four straight days, during which they managed to flip the 20-day SMA from resistance to support. The relative strength index (RSI) is trending around 63, which means that BTC may cross $40,000 before the asset becomes overvalued.
Image: BTC/USD daily
Bitcoin price has a lack of strong resistance barriers upfront. As per IntoTheBlock’s IOMAP, there is a moderate-to-weak obstacle at $39,000 wherein 124,000 addresses had previously purchased 156,000 BTC.
The 4-hour Bitcoin price chart has flashed multiple positive signals, which bodes well for the bulls. Let’s take a closer look at them.
Image: BTC/USD 4-hour
- BTC is trending in an upwards channel formation.
- The 20-bar SMA has crossed over the 50-bar SMA to form a bullish cross.
- The MACD shows sustained bullish market momentum.
New Money Flowing Into Bitcoin
Looking at the image above, posted by Glassnode, we can see that the number of Bitcoins getting withdrawn from fiat-to-crypto exchanges (Coinbase) is exponentially higher than the number of Bitcoins withdrawing from crypto-to-crypto exchanges (Binance). This is indicative of the fact that new money is flowing into Bitcoin with more and more people trying to accumulate as much BTC as possible.
Visa To Enable Institutions and Banks to Buy Bitcoin
Visa has recently partnered with First Boulevard, a digital neobank, to pilot a crypto API, which will allow institutional clients to buy, custody and trade cryptocurrencies held by Anchorage. First Boulevard is focused on building generational wealth for the Black Community. Anchorage is a federally chartered digital asset bank.
The API pilot program is anticipated to launch later this year. Speaking on the matter, the Chief Product Officer at Visa, Jack Forestell, said:
We set out to make Visa the bridge between digital currencies and our global network of 70 million merchants and today we are the leading network for crypto wallets with 35 crypto platforms choosing to issue with Visa. […] With this pilot program, we want to extend the value of Visa to our neobank and financial institution clients by providing an easy bridge to crypto assets and blockchain networks.
By prioritizing partners like First Boulevard, Visa is looking to level the playing field when it comes to accessing new and emerging technologies. The President of Anchorage, Diogo Monica, said that Visa’s API pilot program is an important step both for the proliferation of cryptocurrencies as an asset class as well as for accessibility in payments financial services. He added:
We are thrilled to be working alongside Visa and First Boulevard to build the infrastructure for a more secure and equitable financial future.
Can China Shut Down Bitcoin for $7B a year?
During a recent debate with crypto advocate Anthony Pompliano, Micheal Green - the chief strategist at Logica Capital - spoke about China’s Bitcoin mining dominance. Green highlighted the dominant share of BTC hash rate located within China’s borders, describing the network as “incredibly vulnerable” from the perspective of the US. He went to explain why Bitcoin is not as decentralized as it is perceived to be.
The vast majority of the mining activity is occurring in regions like China, Russia and Iran, and if we incorporate the participation of mining pools, they control in excess of 90% of the hash rate. This is not a decentralized system.
Green added that, for instance, if China were to shut down the Bitcoin network (by starting to mine empty blocks), it would cost the country only $7 billion a year.
The current estimate of how much it would cost to shut down the Bitcoin network [...] if, for example, China were to decide simply to start mining empty blocks [...] is around $7 billion a year. For a nation-state, that’s nothing
However, Pompliano disagreed with Green, saying that Bitcoin is “the strongest computing network in the world [...] by every measure.“ He pointed to recent “diversification” in the Chinese centralization of hash rate, emphasizing notable advances in the hash power commanded by US-based entities.
Furthermore, Pompliano challenged Green’s conjecture that the geographical distribution of Bitcoin’s hash rate represents the capacity for a nation to exert control over the network. He said:
Just because there is any sort of capital flow elsewhere does not mean that those governments control it.
Green also portrayed Bitcoin as a channel for criminality and a tool used by enemies of the US to bypass the dollar. He predicted that the US government will soon ban BTC. To this, Pomp said that should Green’s opinion prevail, the US will make the mistake of excluding itself from the global financial revolution that blockchain and cryptocurrencies will inspire.
Argo Blockchain Bought 172.5 BTC in January
Argo Blockchain (ARB), a publicly-traded Bitcoin mining firm, recently revealed that it purchased 172.5 BTC in January as part of its asset management strategy. In a recent press release, the company noted that it bought the BTC tokens in the second half of January. It is estimated that the flagship crypto was trading between $30,000 and $36,000 during that time.
With BTC trading around $36,500, the new holdings have a current value of more than $6 million. Argo also said that it mined 93 BTC "or bitcoin equivalent" in January, slightly less than the 96 BTC (or equivalent) in December 2020.
According to the press release, the mining company held around 500 BTC by the end of January. CEO Peter Wall said January was the "best month in the company's history in both mining revenue and profits." Notably, Shares of Argo have soared over 1,350% in the past year.
Bitcoin Price Is Expected To Reach These Levels
Bitcoin price is expected to break past the $39,000 resistance barrier and reach the $40,000 psychological level.