As the 2023 Bitcoin (BTC) rally continues, the cryptocurrency has recently achieved a 10-month high, surpassing $30,000, benefiting from generally positive market sentiment. Investors are now eagerly anticipating the next price target for Bitcoin, especially with the ongoing economic uncertainties.
In this line, in a tweet on April 15, Stockmoney Lizards, a pseudonymous cryptocurrency analyst, said the current gains are part of a pre-halving rally that mirrors the 2020 surge of around 320% after reaching a bottom. During both periods, Bitcoin has also attained a Fibonacci retracement of 38.2%.
Looking ahead, the analyst noted that Bitcoin hitting $49,000 remains a ‘possible target for the next months’ based on historical price movements.
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It is worth noting that the next Bitcoin halving is expected to occur in April or May 2024, when the block reward will fall to 3.125. The halving events are considered a bullish sentiment for Bitcoin.
Bitcoin’s new resistance levels
Bitcoin’s latest surge has partly emerged as the world economy is witnessing a decline in inflation, leading to expectations that central banks may soon shift their policies towards monetary easing. Therefore, crypto trading analyst Michael van de Poppe, in a tweet on April 14, suggested that Bitcoin looks strong overall but cautioned investors to expect “shallow corrections in an upwards trend”.
“I’ve marked $31.7-32K as important resistance point. However, $25K was the level everyone wanted to buy. This will probably shift to $28.5K, and then nobody buys. I’d prefer to focus on $29.7K,” he said.
Elsewhere, the Bitcoin rainbow chart indicates that BTC might have embarked on a new rally ahead of the halving event. According to the chart, as of April 15, BTC is currently in the ‘Accumulate’ zone after a period of consolidation in the ‘Basically a Fire Sale’ area.
Interestingly, this pattern resembles a previous trend in March 2020, days before the halving event. In March 2020, Bitcoin emerged from the ‘Basically a Fire Sale’ zone while trading below $6,000. This event marked a significant turning point for the cryptocurrency, triggering a price bottom that eventually led to a surge in value towards the 2021 bull run. Ultimately, this upward trend culminated in BTC reaching an all-time high of nearly $69,000.
The tool serves as a valuable resource for investors to track future price fluctuations of Bitcoin. It uses color bands that follow a logarithmic regression and assesses the historical price performance of Bitcoin, providing insight into the asset’s long-term movements.
The latest Bitcoin gains come after the asset positively reacted to the banking crisis and the Federal Reserve’s interest rate hike, resulting in consolidation. At the same time, following the release of the non-farm payrolls report, which showed a decline in March, the market started to experience renewed bullish activity. Inflation data also indicated a drop in consumer prices in China, which helped to push Bitcoin above $30,000 once again.
Bitcoin price analysis
By press time, Bitcoin was trading at $30,446 with slight corrections of over 1% in the last 24 hours. On the weekly chart, Bitcoin is up almost 9%.
Meanwhile, Bitcoin’s one-day technical analysis, as retrieved from TradingView, is dominated by bullish sentiments. A summary of the gauges is for ‘buy’ at 14, while ‘moving averages‘ recommend ‘strong buy’ at 13.
At the moment, Bitcoin proponents believe the asset is at a pivotal phase in its adoption journey, especially with the U.S. dollar facing an onslaught over its status as the world reserve currency. Bitcoin’s possibility to hit $50,000 will also rely on the broader economic trajectory and external factors like regulatory outlook.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
