On February 12, 2024, the price of Bitcoin reached $49,000 in the USA, erasing the 20% decline of recent weeks. Driven by the US market’s appetite for crypto, Bitcoin could test new annual highs above $52,000 in the coming days.
Bitcoin erases its 20% drop and approaches $50,000
On February 12, 2024, the price of Bitcoin reached $49,725, erasing the 20% drop of recent weeks following the approvals of Bitcoin ETFs in early January. The flagship crypto is approaching the psychological threshold of $50,000, with analysts predicting a possible new all-time high before the next halving scheduled in 65 days.
Bitcoin faces key resistance at $50,000
According to the on-chain analysis platform Intotheblock, Bitcoin faces a crucial obstacle before reaching the $50,000 mark. Over 800,000 addresses have accumulated around 270,000 BTC at an average cost of $48,491.
These holders were in losses until BTC surpassed $49,000 for the first time in almost two years, allowing them to move into the green. Breaking through this key resistance level at $50,000 will require a substantial surge in buying interest.
Some analysts even believe that Bitcoin could experience a brief price correction, with the next significant resistance level positioned higher, around $57,000.
Outlook for Bitcoin Price
The low number of short liquidations during the recent bullish breakout shows a more optimistic sentiment in the market than before. Few participants were liquidated betting on a reversal near the $46,000 zone.
The liquidation map also highlights significant liquidation levels of short positions above $50,000, up to $52,000. This indicates that the price of $52,000 could be reached before a possible reversal.
Although some signals indicate a lack of conviction among holders in a major rally, current price dynamics and liquidations in the derivatives market point to a possible progression of Bitcoin towards the $52,000 zone. The decisive crossing of psychological resistance at $50,000 remains the next key step to confirm this upward trend in Bitcoin.
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