Bitcoin (BTC) is trying to hold on to its gains above $50,000 as the first-ever cryptocurrency hits new all-time highs.
While a large segment of the market expects Bitcoin to continue its bullish momentum with stimulus such as the upcoming halving, another segment believes the major cryptocurrency is on the verge of crashing within days. I believe.
especially cryptocurrency analysts Alan Santana,in TradingView post On February 16th, he suggested that Bitcoin was on the brink of a significant decline following its recent $52,000 valuation, possibly indicating a temporary peak.
The analysis focused on identifying higher highs in Bitcoin’s recent performance, amplifying the notable bearish divergence from the daily Relative Strength Index (RSI).
according to Santanathe February 15th session high ended with a doge, a candlestick pattern indicating indecision, and then the February 16th trading session started bearishly.
Santana emphasized the overextended nature of the current wave and predicted that the next decline is imminent and will be characterized by its speed, suddenness, and strength. In his view, Bitcoin is likely to retest the $35,000 level.
“The middle of the range is located around $35,000…The next support level is confirmed within the $34,000 to $36,000 price range. <…> “The current wave has already spread so much that the next decline can always be expected to be fast, sudden and strong,” he said.
Bitcoin is trying to maintain the $50,000 level
The bleak outlook emerged as Bitcoin successfully retested the $52,000 level and regained its much-needed $1 trillion market cap. These gains followed a week in which Bitcoin recovered from a sub-$50,000 drop in the wake of better-than-expected US inflation data, eventually regaining this psychologically important price level. .
The recent surge in Bitcoin value is due to increased inflows to BTC spot exchange traded funds (ETFs), which analysts expect will continue to grow throughout the year.
Analysts at Standard Chartered, for example, predict that spot ETFs could attract between $50 billion and $100 billion this year alone.
Additionally, the market is closely monitoring the seven pending applications for Spot Ethereum (ETH) ETF approval by the U.S. Securities and Exchange Commission. The SEC is expected to make final decisions on some of these proposals by May.
At the same time, Bitcoin’s halving, scheduled for April, is historically seen as a bullish catalyst for the leading cryptocurrency.
Bitcoin price analysis
At the time of this writing, Bitcoin’s value is $51,683, reflecting a daily loss of less than 1%. The major cryptocurrency has gained nearly 10% over the past seven days.
Additionally, Bitcoin technical indicators are showing bullish sentiment.Summary of one day’s impressions TradingView At 14, it is consistent with Buy sentiment, and at 13, the moving average indicates a Strong Buy. On the other hand, the oscillator is indicating a “sell” at 5.
Overall, Bitcoin’s outlook will also depend heavily on other general economic factors, such as interest rate decisions by various central banks.
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