It looks like the trouble bitcoin has been experiencing as of late is coming to an end. The world’s number one digital currency by market cap has been traversing the doldrums as of late, falling even further into the mid-$40,000 range, though at the time of writing, things have improved somewhat. The currency is back above the $50,000 line and trading more in the range that investors have become used to these past few weeks.
Bitcoin Is Starting to Improve
The present price of $50,600 is a bit of a downward slope from the $52,000 mark that bitcoin was trading at during the early morning hours of Wednesday, but the fact that bitcoin has remained above $50K is certainly a positive sign.
Not long ago, bitcoin had fallen to about $46,000 per unit – a near $10,000 drop from where it had been just a few days beforehand. Naturally, the currency is nowhere near where it was early last week, and it will take time to recover some of the lost ground (as is the case with most corrections), but analysts appear confident that the asset is looking to turn itself around rather swiftly.
Constantin Kogan – managing director of Wave Financial Group – believes that the asset is in line for another upswing, and that this recent jump past $50K is going to place bitcoin in a stronger position rather soon. He states:
With this surprising move overnight to $52K, we may see further upside resistance at the $52,500 and $55,000 levels, and obviously gain again at $58K, as the market will test and discover how many market participants are willing to buy at that price. On the downside, weak support may be found in each key psychological level and ranges where high volume previously occurred, such as $50K, $48K, $44K and ultimately $39K, strengthening as price lowers and becomes more attractive to a wider range of investors.
Are We in for Another Bearish Round?
Kiana Danial – CEO of Invest Diva – believes this recent jump to be only temporary and is confident that we may see another bearish round for crypto investors before bitcoin really takes the time to heal itself. She comments:
Bitcoin has bounced off the $44K support level and is currently attempting to break above the Ichimoku cloud on the four-hour chart. While we have several medium-term bullish indicators on the daily chart, the Ichimoku indicator’s conversion moving average is just about to cross below the baseline moving average which indicates that we may see another round of bearish sentiment longer term. The key Fibonacci retracement levels tracing the uptrend that started in January 2021 and ended in February are set at $47,174, $44K, $40K and $35,754, respectively. Due to bitcoin’s volatile nature, there’s a possibility that we see a break above the all-time highs and a visit to a new high at $67,810 before another pullback.
