The price of bitcoin has been on the rise for several days, exceeding $47,000. Experts are betting on a possible return to around $50,000 this year. There are various technical and fundamental elements that argue in favor of such a scenario. Analysis of the technical and fundamental factors that could lead the queen of crypto towards this symbolic milestone.
A technically validated upward trend
The price of bitcoin has soared in recent days, crossing the $45,000 mark again, then $47,000. On a technical level, Bitcoin presents several positive signals which validate the scenario of a continued rise. First of all, it is now trading above its crucial on-chain support located between $43,000 and $44,000, an area where almost a million BTC have been accumulated according to Whalemap data.
Then, the break of resistance at $44,000 released upside potential, allowing bitcoin to retest $46,000. If it manages to escape this level, the next target is around $47,800, before hoping to return to $50,000. Finally, after weeks of contraction, the return of upward volatility demonstrates renewed interest from buyers. As long as the $44,000 support holds, the trend remains positive.
Institutional adoption and bitcoin halving as drivers
In addition to the favorable technical picture, two fundamental drivers could continue to take the price of bitcoin to new highs. On the one hand, institutional adoption is accelerating, as shown by the massive inflow into US Bitcoin ETFs and continued purchases by MicroStrategy, now holding 190,000 BTC.
On the other hand, the approach of the 2024 halving, by halving the new Bitcoin issued, will mechanically reinforce the scarcity of BTC, a determining upward factor. Combined with positive macroeconomic conditions, these elements argue in favor of a strong comeback for Bitcoin, potentially to its all-time highs.
Driven by an upward technical trend and favorable fundamentals, bitcoin seems to have regained its potential to ultimately aim for a return to the mythical $50,000. Even if resistances are still to be overcome, all the lights are turning green so that Bitcoin can shine again in 2024.
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