Bitcoin is actively working to anchor its price above the $50,000 mark while aiming for a record high. Market opinions are divided, with some predicting a potential downturn for the cryptocurrency. Notably, expert Alan Santana foresees a possible significant price correction for Bitcoin after its ascent to $52,000, which he believes might be a provisional peak.
Expert’s Insight on Bitcoin’s Trajectory
Santana’s analysis draws attention to Bitcoin’s recent attainment of a higher price peak, juxtaposed with a conspicuous bearish divergence in its daily Relative Strength Index (RSI). The trading activity on February 15 ended with a Doji candlestick pattern, signaling market uncertainty, and was followed by a price dip the next day.
Emphasizing the potential immediacy and severity of Bitcoin’s next downturn, Santana suggests that the cryptocurrency could plunge to the $35,000 level. He pinpoints the next support zone within $34,000 to $36,000, cautioning that the forthcoming decline could occur abruptly and forcefully.
Bitcoin’s Market Status and Future Outlook
Despite testing the $52,000 barrier unsuccessfully, Bitcoin has managed to reclaim a market capitalization of $1 trillion. This resurgence follows a period of favorable data that saw Bitcoin’s price surge from below $50,000 and decisively break the $50,000 barrier.
The role of spot Bitcoin ETFs in the currency’s ascent is a subject of discussion, with some attributing the market boost to increased liquidity from these funds. Analysts from Standard Chartered have posited that such ETFs could infuse $50 billion to $100 billion into the sector in 2024.
Bitcoin’s price stood at $51,300 at the time of the report, indicating a daily loss exceeding 1% but still showing a 10% increase over the past week, providing investors with some relief.