Bitcoin (BTC), the largest cryptocurrency by market cap, could be facing a critical situation as it struggles to reclaim the $52,000 level.
Bitcoin (BTC), the largest cryptocurrency by market cap, could be facing a critical situation as it struggles to reclaim the $52,000 level.
According to the cryptanalyst AliIf BTC fails to break above this level soon, it could trigger an 8% correction that could see its price drop to $48,000 or lower at $46,500.
According to data from TradingViewBTC has been trading in a tight range for the past few days, since hitting highs of $52,890 on February 15.
According to Ali, if Bitcoin fails to quickly reclaim the $52,000 level, it could trigger a wave of selling pressure that could push its price towards the next support zone at $48,500 or even as high as $46,500. This price range represents an area of strong demand, as over 1 million addresses purchased over 544,870 BTC, indicating significant support.
At the time of writing, BTC was trading down 0.06% at $51,736.
Catalysts that could affect the price of BTC
Chain analytics company In the blockIn a recent analysis, he presents key factors that could affect the price of BTC in the coming days.
Bitcoin price is currently 24.78% away from its all-time high of $69,000 set in November 2021; However, bullish catalysts continue to align.
According to IntoTheBlock, big catalysts on the horizon that could push BTC to all-time highs before the summer include halving, ETFs, and easing.
The Bitcoin halving is scheduled for mid-April 2024. In it, the amount of rewards given to miners per block is halved from 6.25 BTC to 3.125 BTC. In terms of Bitcoin price, a quick hash rate recovery would help ensure the security of the Bitcoin blockchain and therefore have a positive impact on the price.
Another catalyst for Bitcoin is likely to be continued inflows from spot ETFs. Just one month after its creation, Bitcoin ETF products have recorded more than $4 billion in new inflows.
This could lead to increased demand for Bitcoin while issued supply decreases following the halving, creating potentially explosive dynamics for the price of Bitcoin.
