While the spot-Bitcoin ETFs started trading just a little over a month ago, the reaction of Bitcoin (BTC) was suboptimal, as it briefly retreated below the $40,000 threshold, surprising many and echoing bearish predictions.
However, in recent days, the flagship crypto appears to be on a steady road to recovery, surpassing the $47,000 mark as the inflows into ETFs begin to stabilize.
BTC is probably seeking liquidity levels above previous highs, potentially surpassing the threshold of $51,800 before the upcoming halving event, according to cryptocurrency expert Michael van de Poppe’s post on X on February 9.
Price range determination for BTC price. Source: Michael van de Poppe
The range low looks set just below the threshold of $38,126.
However, based on the recent strong performances, van de Poppe readjusted his range of high predictions, which might now go up from $55,000 to $58,000 before the halving event.
#Bitcoin above $47,000.The range is still clear, $48,000-50,000 as a potential high for the upcoming period, but given the recent strength, we might see $53,000-55,000 pre-halving.
— Michaël van de Poppe (@CryptoMichNL) February 9, 2024A usual historical movement before halving
Looking at the historical movements, it is easy to deduce patterns of price movements and notable surges and dips. When it comes to halving events, Bitcoin is quite repetitive.
Crypto analyst Rekt Capital sees the maiden crypto currently experiencing a pre-halving rally, a phenomenon observed historically to occur approximately two months before its halving event.
The historical price movement of BTC before halving. Source: Rekt Capital
Technical indicators point above $50,000
Analyzing the technical aspects, it is noteworthy that a bullish trend has emerged. Bitcoin has successfully surpassed the resistance level of $44,000, indicating a significant breakout in the market.
This breakout is a robust indication of the prevailing bullish sentiment and suggests the potential for further gains in the market. Additionally, the importance of the weekly closing above $47,000 is a crucial technical confirmation of a new bullish trend. This level holds significance in determining the direction of the market.
The Relative Strength Index (RSI) chart is a momentum-based visualization tool for analyzing the Bitcoin market. It gauges the velocity and the scale of directional price changes within Bitcoin. BTC’s RSI is 71, placing it in the overbought territory.
BTC RSI chart. Source: TradingView
Upon further examination of the technical indicators, we observe a ‘strong buy’ rating of 16, indicating a favorable sentiment. Now at 14, the moving averages also trend toward a ‘strong buy.’ However, oscillators currently indicate a ‘neutral’ rating of 8.
Technical analysis of BTC. Source: TradingView
It is essential to note the ease in Bitcoin’s price recovery, which signifies strong backing that may propel it toward further price gains, but whether that is $50,000, below, or more remains to be seen.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
