Bitcoin Technical Analysis: For nearly two weeks, the leading cryptocurrency Bitcoin has traded sideways resonating with two horizontal levels of $53050 and $50600. The consolidation accompanied by short-body candles and long wicks reflects uncertainty among market participants. Despite the lateral movement Matrixport recently released a bullish outlook for BTC with the potential of $63000 in March 2024.
Also Read: Bitcoin ETFs & Crypto Stocks Lose Steam Amid These Key Developments
Is Bitcoin Price Ready for $60000?
Matrix Port, a leading digital assets financial services platform, has released an optimistic report regarding Bitcoin’s price trajectory, projecting a target of $63,000 by March 2024. Highlighted in a tweet by renowned Chinese cryptocurrency reporter Wu Blockchain, the report identifies several key catalysts that could drive Bitcoin’s price to this ambitious level.
Foremost among these catalysts is the approval of a Bitcoin spot ETF, a development long-awaited by the cryptocurrency community. On February 23, the 8 ETF added 5,781 $BTC, recording net inflows of $232.3 million. These numbers surpass the 900 Bitcoin minted every day, reflecting a higher demand in the market.
Another significant factor is the upcoming Bitcoin halving event, historically a precursor to substantial price increases. The halving, which reduces the reward for mining new blocks by half, effectively decreases the rate at which new bitcoins are generated, thus limiting supply and potentially driving up the price.
Additionally, the report cites expectations of an interest rate cut following the Federal Reserve’s Federal Open Market Committee (FOMC) meeting as a potential bullish signal for Bitcoin. Lower interest rates can diminish the appeal of yield-bearing assets, making non-interest-bearing assets like Bitcoin more attractive to investors seeking higher returns.
Lastly, the U.S. presidential election is also mentioned as a factor that could influence the Bitcoin price.
Reversal Pattern Sets BTC for Major Trend Change?
An analysis of the higher time frame chart shows the recent surge in BTC has breached the neckline resistance reversal pattern called cup and handle. This pattern frequently appears after a significant downturn indicating pivot points of trend reversal.
Currently trading at $54489, the Bitcoin price hints at the continuation of the current sideways trend. A possible breakdown below the range support tumbled the BTC price to $49000 and retested the breach.
If the coin price shows sustainability above $49000, the BTC price may chase a potential target of $82600.
- Bollinger Band: A downtick in the lower boundary of the Bollinger Band indicator reflects the waning bullish momentum.
- Average Directional Index: The ADX slope uptick at 34% reflects the buyers may need a minor pullback to recuperate strength.
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