Bitcoin

Will The Recent Reversal Help Bitcoin(BTC) Price Hit $42,000 Mark This Weekend?

Written by: Elena R

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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Feb 25, 2022

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Highlights

    Cryptocurrency prices rise back to pre-dump levels in just a couple of hours

    Proponents from the crypto town enlightens on BTC’s bullish levels to consider

  The crypto town has risen from its shadows, which had enveloped the business in the gloom. The industry is now portraying healthier and greener numbers, which has come out of the blue for crypto folks. As merchants and investors were contemplating a prolonged bearish run. The sentiments however are yet to show positive signs, as the fear continues to reside.

Successively, the market capitalization of the crypto industry has risen around 8% over the bygone day. Taking the numbers to $1.8 Trillion, which is a relief from the previous day’s plunge to levels around $1.5 Trillion. Wherefore, the prices of the majority of the cryptocurrencies are back to pre-dump levels in just a couple of hours. In the interim, the crypto proponent enlightens on Bitcoin’s bullish levels to consider.

Is This A Sign Of An Incoming Bullish Leg-up Ahead Of March?

  As previously cited, the crypto business has taken a turnabout from bearish trends to optimal levels. Crypto analytics firm Santiment, in a social post, cites that the business has rebounded at an astonishing pace. Taking the prices of a majority of cryptocurrencies above plunge levels. However, continued volatility could persist as sentiments would react to ongoing updates.

In succession, the whales have had an extremely different behaviour since the geopolitical tensions. From being isolated to double-digit change in percentage within the each-assets 90-D range of whale holdings. Which is about 5X more activity than a typical day, the chart elaborates the 1-day change within the 90-Day mean of supply holdings. 

On the other hand, coming to the star crypto Bitcoin, the digital asset is seen following the trends of tech stocks. And not that of gold, which saw a sudden spike amidst the market-wide fall. This hints that a majority of investors still relate Bitcoin with that of tech stocks and not with gold. Consequently, traders are now looking forward to the footprints of Bitcoin.

Is This Where Bitcoin Is Heading?

  The star crypto Bitcoin has risen from the doom of the bygone day and is presently registering brighter numbers. BTC at the time of press is changing hands at $38,840.20 with gains tallying to about 11% over the past day. The market cap of the digital asset has risen to numbers around $736,707,999,686. The ascend from the previous day’s lows of $34,556.64 has been overwhelming for Bitcoiners.

In the interim, crypto proponent Lark Davis cites that Bitcoin price almost got above its 21-D EMA. With the wick falling short of lifting up the candle above the desired levels. If Bitcoin gets above the 21-D EMA and its 50-D MA over the weekend, we can expect bullish signals ramping up. That would help the price of BTC sustain above the $40,000 mark.

However, Bitcoin sustaining well above the $42,000 threshold is what remains crucial for a flight to greater highs. As the levels have historically been a crucial level of resistance and support. Conversely, talking about on-chain analytics, the daily Netflow of Bitcoin is up to $213.1 M. 

Bitcoin’s number of spent outputs with a lifespan of 7y-10y (7D MA) had reached a 4-month low of 10.125 a couple of hours ago. On the other hand, the futures contract’s short liquidations had peaked at a 6-month high of $19,078,616.97 on Okex. In addition, the volume of the perpetual contracts for 24-hours hit a 9-month high of $11,789,052,624.69 on Okex. 

In conclusion, the escalating run of crypto assets coming out of the blue has given major impetus in up-lifting the business. Moreover, Bitcoin refuting the odds and inching higher has reinstated faith in a possible run in the near future. That said, a breakthrough above the psychological barrier at $40,000 would open doors to levels around $42,000.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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