The largest global cryptocurrency rose again above $ 45,000 this week. Two days ago, on February 8, the market mood (index of fear and greed for bitcoin) changed to “neutral” from “fear,” and Bitcoin briefly jumped to $ 45,510. In addition, the Canadian firm of accounting giant KPMG has stated that it will add Bitcoin and Ethereum to its treasury funds. According to a sentiment tweet released earlier this week, Bitcoin recently showed a close relationship with the S&P 500 index and grew along with it. As of Monday, this index has risen by almost 2%. Major cryptocurrencies are exploding this week. The bitcoin price jumped to the highest level in four weeks and rose by almost 26% compared to the lowest level since January 22. The price of Ethereum increased by 29%, BNB by 17%, Cardano by 17%, XRP by 42%, and saltworks by 26% compared to the lowest values from 2022.
Looking at the chart on the four-hour time frame, we see that we are still in consolidation in the range of $ 43000-46000, and we need a break above up to $ 47000 to get out of this consolidation. Until we exceed the $ 53,000 price, we can say we are in a bearish trend.
We need continued positive consolidation and break prices above 44830 to form a new February higher high on the chart.
The first potential resistance to us could be a zone at $ 46,000, then $ 48,000, and then a psychological $ 50,000 for one Bitcoin.
Our main bullish target is high from December at $ 52,000.
We need a new negative consolidation and a price withdrawal below $ 44,000, and the additional pressure would be in the MA20 moving average, which would move to the bearish side.
In the continuation of this bearish consolidation, we are descending further to the zone of 40,000 dollars, and additional potential supports at that level are our MA50 and MA200 moving averages.
Some maximum price drop and potentially bigger support is on our lower trend line and priced at $ 38,000.
Breaking prices below would increase bearish pressure and direct the price of Bitcoin to even lower levels on the chart.
Crypto analysts believe that this recovery could signal the beginning of a long-term bull market. As another positive driver, Bloomberg points to the easing of regulators’ attitudes toward cryptocurrencies: most importantly, it will run counter to China’s antipathy. ”
The evolving role of Bitcoin is likely to draw more institutional money in the future. Bloomberg also noted that “the process of replacing gold with bitcoin in the portfolio is accelerating, and we see that the risks are leaning towards more of them.” This highlights the transition of bitcoin from speculative assets to a storehouse of value and an attractive alternative to gold – once the ultimate protection against political and financial uncertainty.
All estimates are that 2022 will be a good year for bitcoin. But that doesn’t necessarily mean good for altcoins, especially smaller ones, despite their historical correlation with bitcoin.
As the crypto market grows, bitcoin benefits from the first mover’s advantages, its role as an unmatched digital repository of values, network effects, and limited supply, features that other digital assets cannot replicate.
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