As the crypto market is experiencing a revival, the recent rally in Bitcoin (BTC) has caught the attention of investors and enthusiasts. The flagship cryptocurrency hit a remarkable 10-month high, breaking above the $30,000 mark, supported by an atmosphere of positive market sentiment. Amid continued economic uncertainties, investors are now eagerly awaiting Bitcoin’s next price trend and pondering the potential implications for the wider market.
Bitcoin Flashes Bullish Indicators
Bitcoin’s recent rally has been partly fueled by the observed decline in inflation in the global economy, which has raised anticipation that central banks may soon shift their policies towards more accommodative monetary policy.
In a remarkable run from April 9 to April 14, Bitcoin’s price soared more than 10%, recording its highest daily close in more than ten months. While some pundits might argue that this surge indicates some level of detachment from traditional markets, it’s important to note that the S&P 500 and gold are near their six-month highs.
Additionally, Bitcoin’s impressive rally above $30,000 occurred as the US Dollar Strength Index (DXY) – a metric measuring the performance of the US currency against a basket of currencies foreign – fell to its lowest point in a year.
According to on-chain company, BlockchainCenter, the Bitcoin rainbow chart seems to suggest that BTC may have initiated a new rally leading up to the halving event. As of April 15, the chart positions BTC in the “Accumulate” phase, after a period of consolidation within the “Basically a fire sell” territory.
In March 2020, Bitcoin broke out of the “Basically a fire sell” zone, trading below $6,000. This development marked a pivotal moment for the cryptocurrency, setting the stage for a price reversal that ultimately paved the way for the bull run of 2021. Consequently, this upward trajectory saw BTC reach a staggering all-time high from near of $69,000. Therefore, Bitcoin could see a potential bull run ahead of the halving event.
Also Read: Bitcoin Whales Begin To Spill – Has BTC Price Rally Been Mined By Bears?
Will Bitcoin reach $33,000?
The bears are currently trying to impede the upward move, trying to knock the price of BTC down to its crucial support level of $30,000. If the buyers fail to hold the price above $30.5,000, the value of BTC may drop significantly below the 23.6% Fib level.
If the price of BTC drops by $30,000 but manages to stay above the 20-day EMA at $28.7,000, this will reinforce the likelihood of a rally above $32.5,000 in a few days. If this threshold is breached, Bitcoin could skyrocket towards the $40,000 mark.
At the time of writing, the price of BTC is hovering around $30.4,000, registering a drop of almost 1% in the last 24 hours. A renowned crypto analyst suggests that Bitcoin may face a slight pullback soon, testing support near the $29,000 mark. If the price of BTC holds firmly above this level, it may generate enough buying momentum to propel its value past $33,000.