- A strong support between the Fib levels of 0.786 and 0.886 could trigger another BTC surge.
- Long-term holders continue to accumulate, supporting the projection.
“Shall Bitcoin [BTC] reach $50,000 by the end of the year?” This is a question that many holders of the King Coin may have been asking themselves, given the price action in recent weeks.
Read Bitcoins [BTC] Price prediction 2023-2024
Combined with Standard Chartered’s previous forecast this year, it is not out of place to reminisce about the potential.
But is BTC showing signs of getting closer to the aforementioned price point? Market analyst CRYPTOHELL, who are analysis on CryptoQuant, weighed on the discussion from a technical perspective.
The Fib has come into play
According to CRYPTOHELL, Bitcoin has the potential to score between $44,000 and $47,300. The analyst came to this conclusion by looking at the Fibonacci levels.
This indicator provides benchmarks for price movements. It can also be crucial in showing where a coin price is likely to rise or reverse.
For the analyst, Bitcoin could reach the Fibonacci level of 0.0786-0.886. Typically, if BTC reaches the Fib level of 0.786 or 0.886, it means that the coin has had solid support at 0.618. Therefore, a breakout is likely, and given its current value, BTC could rise above $40,000.
Source: CryptoQuant
Like many other analysts, CRYPTOHELL also mentioned that macroeconomic factors such as the possible adoption of the spot ETF also point to a bullish thesis for Bitcoin. He wrote:
“When we analyze the Bitcoin Exchange Flow, traders in both the spot and derivatives markets are not aggressive in making decisions to sell their stocks in large quantities.”
A vibrant cohort and a value ready to soar
The potential for a Bitcoin bounce was also boosted by the liveliness. Bitcoin’s vibrancy increases as long-term holders sell their holdings. If this happens, the value of BTC will most likely drop.
However, at the time of writing, the metric had dropped significantly to 0.59. This decline implies that more accumulation has taken place. Combined with the current ETF story, accumulation could trigger another BTC price surge.
Source: Glassnode
A look at the Exponential Moving Average (EMA) showed that the currency’s consolidation won’t last for long. At the time of writing, the 20 EMA (blue) had crossed the 50 EMA (yellow).
This is usually a bullish signal. So it is very likely that BTC will do the same reclaim First $35,000. If the EMAs remain the same, the coin could approach $40,000. There was also a gold cross as the 50 EMA (yellow) was also above the 200 EMA (cyan).
How many Worth 1,10,100 BTC today?
Technically, a golden cross as shown above would establish a new uptrend. So even after Bitcoin crosses $40,000, there is a chance that the rebound will continue. Furthermore, the Money Flow Index (MFI) matched the EMA indication as it rose.
Source: TradingView
At 78.55, the MFI showed that there was a lot of buying pressure for BTC. This therefore leaves open the possibility of a price increase.