The price of Bitcoin recently broke its April 2023 highs. What could happen to the father of cryptocurrencies now? A look at the graph.
The cryptocurrency market has recently witnessed a remarkable recovery in the price of Bitcoin. After hitting the technical support level of $25,000, Bitcoin quickly recovered, first approaching $30,000 thanks to rumors of an ETF Spot of BlackRock and subsequently surpassing this level reaching highs of April 2023, over $31,000.
However, the question arises whether this rapid growth can be considered a liquidity trap or whether Bitcoin is actually poised to make new highs later in the year.
Bitcoin Price Predictions
Analysts find it difficult to insert the trend of Bitcoin, considered the father of cryptocurrencies, within a cyclical analysis, especially when dealing with typical mechanisms of the traditional economy. Although some may turn up their noses at the idea of considering Bitcoin as a "dependent" asset, it takes a specifically distinct attitude based on market cycles. On the basis of a dimension of a technical nature, linked to the halving event, which is getting closer and closer; and of an economic nature, based on logics linked to liquidity and expectations regarding expansion or restriction of monetary policy. For this reason, the price of BTC shows a rather linear relationship with that of Nasdaq and other speculative assets (albeit in an extreme way).
Indeed, the market appears to be pricing in a good time for Bitcoin, as demonstrated by the recent surge in BTC demand. Conversely, short traders are progressively abandoning their short positions, and since the beginning of 2023, the points where short positions accumulate seem to work like a magnet for the price of the crypto. One such area, seemingly full of short positions, is the $35,000 threshold, which appears to be a target price shared by many technical analysts.
Bitcoin technical analysis
From a technical point of view, the graphs provide indications that are inconsistent with each other. While the price of Bitcoin has surpassed $31,000 on a daily basis, for many this is not enough of a sign to rule out the possibility of a fresh cash grab. In particular, some oscillators appear to be pointing to overbought zones again.
However, if we look at the weekly scale charts, the situation becomes clearer and more positive: the divergences fade and the oscillators show that there is room for price growth. Therefore, according to some experts, a solid confirmation of the trend could come from the weekly closing of a green candlestick above the technical and psychological resistance of $31.000. This level has played a crucial role in shaping the transition between an uptrend and a downtrend from 2021 until today.
- BTC/USD, 1W
Original article published on Money.it Italy 2023-07-04 17:44:31. Original title: Bitcoin sopra i massimi di aprile: quanto ancora può durare il rialzo? Le previsioni
