Bitcoin Back Above $48,000 – Is This Level The Springboard To $52,000?

Christian Encila

1 year ago

3 mins read

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Bitcoin roared back this week, clawing its way to $48,207 – its highest point since early January. This fiery ascent follows weeks of muted trading, fueled by concerns about institutional outflows and a post-ETF price dip. But what’s sparking this sudden surge? And can the digital dragon overcome its next hurdle?

Positive Winds Fill Bitcoin’s Sails

Several factors are propelling Bitcoin’s recent rally:

Spot ETF Momentum: The long-awaited launch of spot Bitcoin ETFs in January might be finally delivering on its promise. Potential inflows and positive sentiment surrounding these new investment vehicles are driving interest.
Halving Horizon: The Bitcoin halving, scheduled for May 2024, looms large. Historically, this event, which reduces the rate of new Bitcoin creation, has been linked to price increases, fueling investor optimism.
Market Synergy: The S&P 500’s recent ascent to record highs seems to be spilling over to the crypto market, creating a wave of positive momentum.
Lunar Luck? Bitcoin often experiences gains around the Chinese New Year, and this year is no exception. The “Year of the Dragon,” with its auspicious connotations, adds another layer of bullish sentiment.
ETF Absorption of Selling Pressure: Several ETFs have absorbed over a billion dollars worth of Bitcoin selling pressure in recent weeks, indicating underlying demand despite pre-ETF concerns.

Bitcoin currently trading at $47,335 on the daily chart: TradingView.com

But Can Bitcoin Slay The Resistance Dragon?

While the outlook seems bright, challenges remain:

Resistance at $48,500: Bitcoin faces a crucial resistance level at $48,500. Breaking through this barrier is key for a potential new all-time high.
Post-ETF Sell-off: Despite the recent surge, Bitcoin remains below its pre-ETF highs, sparking concerns about a potential sell-off after the initial excitement fades.
Volatility Reigns: Crypto remains a notoriously volatile asset, and predicting future price movements is fraught with difficulty.

Experts Weigh In: Bitcoin At $52K

Sylvia Jablonski, CEO of Defiance ETFs, attributes the price appreciation to “recent inflows into the spot ETFs, the prospect of the halving, and general market momentum.” However, she cautions that breaking through resistance levels is never guaranteed, and investors should approach any investment with caution.

Meanwhile, Markus Thielen, the founder of 10x Research and head of research at Matrixport, predicted more rise in bitcoin prices using Elliott Wave theory, a technical study that makes the assumption that prices move in repeating wave patterns.

The idea states that price trends evolve in five stages, with waves 1, 3, and 5 serving as “impulse waves” that indicate the primary trend. Retracements between the impulsive price movement occur in waves two and four.

According to Thielen, BTC has begun its final, fifth impulsive stage of its uptrend, aiming to reach $52,000 by mid-March, after completing its wave 4 retracement and correcting to $38,500.

Featured image from Adobe Stock, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.