Bitcoin Eyes $60,000 as Bullish Momentum Builds

Bitcoin price has bounced above $42,500 pushed by the increase in trade into bitcoin ETFs and the decrease in liquidations through Grayscale Bitcoin Trust (GBTC). Based on the historical trend of the crypto analysts, Bitcoin looks like getting ready for $60,000 up move.

Bitcoin Bounces Back Above $42K

After the bitcoin hit a low of about $38.500 in mid-January, the coin has since rebounded to trade above $ 42,500 again. The growth also falls amid the rise in interest rates for crypto market, with individuals investing more than $119 million last week, that is considered as its largest inflow ever.

At the same time, GBTC saw its smallest weekly outflow since mid-2021, suggesting institutional investors are becoming less bearish on Bitcoin. The combination of ETF inflows and reduced GBTC outflows has provided significant tailwinds for bitcoin’s price.  

Bitcoin Analysis

The latest Bitcoin decent price per coin trading is at around $42,800, according to CoinMarketCap for one 1day period. The total market capitalization for this coin currently stands at about $840 billion, a decline of 0.21% from what was reported over the past day. In its latest daily performance, the trading volume came down to $22.6 billion, a -0.2%, representing a trade lower than what was seen on the previous day.

BTC1day Chart. Source: Trading View

To gain more insight into these scores, when we analyze Bitcoin’s RSI (a momentum indicator measuring price change magnitude) for the numbers above. The RSI 14 for Bitcoin just recovered from an oversold state hovering close to the readings of round 30 and now sits at 53.

This indicates that even though there was withdrawl, positive momentum has reappeared on the cryptocurrency after sentiment went to an unbearable level mid this month.

On the point, the rebound from oversold RSI levels complies with the story of an increased institutional participation in furthering Bitcoin price rise after recent drops. The virtual money had trouble in the first quarter with technology stocks but is establishing itself as a hedge against traditional downturns.

Thoughts Moving Forward

The bitcoin now stands at a crossroad position. Its recent emergence from oversold spending, noting a tendency to maintain movements reversal duration back towards bull market order. But yet, BTC hasn’t exactly flipped its old resistance around $45k to support. It is possible for it churn out a bearish continuation tendency towards lows of 2023.

A lot will depend on if the new institutional interest of miners eventually results in sufficient buying momentum that flips not only sentiment but feature technicals into bullish territory. Even as price action and on-chain metrics turned bullish for Bitcoins, follow through is still to be observed.

Having registered growth in the recent past, if this cryptocurrency manages to hit that level over $50,000 and break above it, momentum is likely going to take off. This can be a signal for the broad market recovery rally, even more so considering that uncertainty continues at the macroeconomic level.