After starting the year timidly, bitcoin surprises everyone with an unprecedented performance since the 2021 peak. While some had predicted a 50% drop before the halving, the price of bitcoin soared to $35,000 This morning ! Has the bull cycle started? Should we instead exercise caution and fear an imminent decline? Analysts make their predictions.
Bitcoin finally broke the $30,000 resistance level
It’s done ! In the morning today, bitcoin soared to $35,000. This unexpected rally allows the cryptocurrency to finally exceed the resistance threshold of $30,000. According to on-chain datamore than 80% of bitcoin holders made profits on their BTC holdings thanks to this increase.
The company Microstrategy, which is currently the holder of the largest stock of bitcoins in the world, seems to have bet well. While it was already at 2.23 billion losses on its BTC holdings, it has just made 10% profits on its 4.4 billion euros of bitcoins.
Several cryptocurrencies have seen their prices rise with this increase. Likewise, statistics indicate a 27% increase in the amount of BTC held by short-term traders over the last 30 days. Clearly, everything seems to indicate that the upward trend has started. But what do analysts say about this?
The start of a bullish cycle or a misleading rise?
Right now, bitcoin is heading towards the $40,000 mark. According to an analysis done by IntoTheBlock, there are no resistance levels in sight. Moreover, if we take into account the UTXO Realized Price Distribution (URPD) model, the next resistance zone for BTC should be between $38,440 and $47,360.
It is therefore possible that we are facing a real upward trend. According to IntoTheBlock, even if the price of the parent cryptocurrency were to fall back, the $30,000 level will be the support. Excellent news for investors!
However, Whalewire, a popular bitcoin critic, calms the heat and attributes the rise to a craze for ETFs. He recalls that bitcoin had already fallen to low values after dizzying increases in previous bear cycles. For him, this sharp rise is a FOMO rally, a misleading rise that could give way to violent corrections.
Should investors withdraw their realized profits and avoid buying bitcoins or can they invest to take advantage of the upside? Everyone will have to respond according to their appetite for risk.
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