He Bitcoin it returned to its winning rally and is approaching $30,000, its highest point since June, a difficult mark to beat. During the afternoon of this Monday, the largest cryptocurrency in the market reached 29,286 dollars, 3.55% than the previous day.
Bitcoin has been sailing near this resistance zone since March, after rising 72% in the first three months of the year, his best quarter in two years. Despite Bitcoin’s rally, it has not recovered even half its value since its record high of $69,000 in November 2021.
Some specialists anticipate that the price of Bitcoin could move again after the data from the US inflationwhich are expected for Wednesday.
Eight’s CEO, Michael van de Poppeargued on Twitter that the new report could be “the market engine” that the cryptocurrency needs to break out of the levels it has been trapped in for several weeks, and to surpass the $30,000 mark.
Fiona Cincotta“After an impressive rally in March, we are now looking at a period of consolidation just below the key $30,000,” said City Index, a senior financial markets analyst at City Index.
“The bulls are pausing to catch their breath before the next attack on this key resistance,” added Cincotta, who said that a break above $30,000 still “looks likely.”
Bitcoin is the most famous cryptocurrency in the world.
April is a solid month for Bitcoin, the second best month behind October, according to data compiled by Bespoke Investment Group. Over the past five years, it posted an average gain of 15.63% in April, according to Bespoke.
Will Bitcoin hit $50,000?
Bitcoin could rally towards the u$s50,000 and 2023based on a historical price pattern highlighted by the popular market analyst known as “Mags.”
The chart pattern highlights the similarities between Bitcoin’s current price trends and those recorded after the end of the 2013-2015 bear market.
That includes Bitcoin’s consolidation into the $200-$300 range between January 2015 and August 2015, which looks identical to its consolidation into the $18,500-$25,000 range after the supposed completion of its 2021-2022 bear market.
The price of BTC broke above the $16,000-$25,000 range in March 2023, leading Mags to highlight its resemblance to the break above the $200-$300 range in October 2015, Cointelegraph noted.
Since this led to a rally towards $700 in June 2016, the analyst sees the scenario potentially repeating itself in 2023, with the price of BTC doubling to $50,000. “Being bearish here, when the price of Bitcoin is around $28,000, is like being bearish at $350,” Mags added.
The liquidity crisis could ruin the party for the price of Bitcoin
The bullish case for Bitcoin comes amid expectations that the US Federal Reserve will slow the pace of interest rate hikes.
Given that this led to a rally towards $700 in June 2016, the analyst sees the scenario potentially repeating itself in 2023.
Due to expectations of lower rates, the yield on the 10-year US Treasury note has fallen. This, in turn, has boosted investor appetite for risky assets, such as Bitcoin and gold.
In addition, lower yields have also dampened demand for US dollars, which will lose 1.33% in 2023 against a basket of major foreign currencies. Since the value of Bitcoin is largely denominated in dollars, this means higher prices for BTC/USD.
However, Bloomberg analyst Mike McGlone has warned of a potential bull trap in the Bitcoin market due to the growing shortage of liquidity. “It may be illogical to expect the stock market, crude oil, copper and Bloomberg Galaxy Crypto Index (BGCI) to sustain recent rebounds with yoy measures of money supply and commercial bank deposits falling around 2% “.
