Recently, the value of Bitcoin (BTC) has been increasing and has surged 3% from its recent low point. This has led to speculation among investors about the potential upper limit of its value in the current market. Nonetheless, its recent upward trend has been driven by several factors, including ongoing advancements in the cryptocurrency industry and Bitcoin's reputation as a secure investment option.
The failure of some banks in recent times has led to a loss of trust in conventional banking systems, which is believed to be a significant contributing factor to the increase in Bitcoin's value. As a result, investors perceive the crypto as a secure investment option in such a scenario.
Earlier this week, Bitcoin surged to a new record high of $28.8K, but it has since retreated and fluctuated between the $ 26k and $27k range. Despite this, several specialists anticipate that it is highly likely that Bitcoin price will soon surpass the $30k mark.
Rekt Capital claims that price behavior is imitating historical trends, leading to a typical bull market resurgence. According to a recent analysis, Bitcoin is expected to initiate a new macro uptrend within a few days. Rekt Capital pointed out a significant monthly close that is expected to happen soon for BTC/USD in their latest tweet.
BTC price movement closely imitates past cycles
Although BTC is encountering challenges in turning $28k into a support level, its price movement shows solid indications of breaking away from the bear market. BTC/USD's recent gains have positioned it above a macro downtrend that has been in effect since its all-time highs in 2021. However, if the candlestick chart for March can conclude above the trend line on monthly timeframes, it would be the first potential instance of that happening.
Rekt Capital stated, "The BTC Monthly Candle is set to close above the Macro Downtrend next Saturday, confirming a new Bull Market."
A chart that came with the statement compared BTC's price activity in 2023 with previous cycles and indicated that Bitcoin is presently moving towards new all-time highs after establishing a low in the bear market. If that is indeed the case, the low point of the cycle would have happened in November 2022, shortly after the FTX incident, when BTC/USD reached around $15,600.
Source: Rekt Capital/Twitter
Notice how #BTC Macro Downtrend Breakout Candles have historically had upside wicks form (yellow circles)— Rekt Capital (@rektcapital) March 25, 2023
This current Monthly breakout candle looks no different$BTC #Crypto #Bitcoin pic.twitter.com/HSzaaXHGfe
No more flipping $28K as weekly close motions
Another post emphasized that the current monthly candle adheres to Bitcoin's historical trends concerning breakouts from macro downtrends.
As the weekend draws to a close, the spot price movement of Bitcoin remains unpredictable, leaving market participants uncertain about its future trajectory.
Trading activity for Bitcoin has been relatively stagnant, with minimal variation in recent days. A slight increase above $28k was the only significant occurrence during this period. However, BTC/USD has dropped below that level, as indicated by data from Cointelegraph Markets Pro and TradingView.
Skew, a well-known analytics account, suggested that exchange activity on weekends tends to be typical, with lower overall liquidity making it easier to influence the spot price.
$BTC Spot CVD Buckets & Delta Orders— Skew Δ (@52kskew) March 26, 2023
MMs selling pretty heavily here into some large buyer, typically price compresses till either side is out of capital to move price or gives up.
Sunday shenanigans, GN CT ❤️ pic.twitter.com/4MFz6qSAYf
Trader Crypto Chase assessed several possible scenarios and identified $28,600 as the crucial level to watch. On the upside, $33,000 was identified as the level where a "major reversal" would occur.
Why Bitcoin could be indicating new highs
The cryptocurrency industry's optimistic outlook on Bitcoin is partly due to the asset's performance during the recent banking crisis caused by the failures of Silicon Valley Bank and two crypto-friendly lenders, Signature Bank and Silvergate Capital.
Yet, bitcoin rallied instead of crashing. Advocates argue that this is proof that Bitcoin provides an alternative to the conventional banking system as a secure place for individuals to store their funds.
Oliver Linch, the CEO of Bittrex Global, believes that the recent rally in Bitcoin can be attributed to people being concerned about the banking system due to the recent collapses.
The crypto’s proponents have long claimed that Bitcoin is a type of "digital gold," a secure asset that can offer investors protection against inflation and serve as an investment during times of unrest. However, in recent years, Bitcoin has been trading in tandem with the stock market, particularly the technology-focused Nasdaq.
This year, Bitcoin has been performing significantly better than the Nasdaq, as well as many other high-risk assets and even gold. This suggests that the asset is starting to become decoupled from the stock market.
Bitcoin's recent price increase can also be attributed to the possibility that the banking crisis may limit the Federal Reserve's ability to raise interest rates, which would benefit riskier assets like cryptocurrencies.
BTC price: Is it a hit or miss?
Bitcoin has experienced an increase in value of almost 70% since the beginning of the year, and experts in the industry are optimistic that the cryptocurrency could reach new record highs.
It reached its peak value of over $68k in November 2021 but has since dropped by approximately 60%. According to Marshall Beard, the chief strategy officer at Gemini, if Bitcoin reaches its previous all-time high of around $69k, it would be easy to get $100k. He believes Bitcoin only needs a slight push to reach the $100k mark, as it would require a rally of approximately 270%.
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