Bitcoin, the largest cryptocurrency in the market, has faced another setback in its journey towards reaching the $38,000 level. With a 3% pullback, many in the community are speculating that a significant retracement might take place before the bullish momentum resumes and the next uptrend begins. Renowned crypto analyst Adrian Zdużyć has shed some light on Bitcoin’s potential next target of $50,000. Through his analysis, he considers multiple factors such as market sentiment, uptrends, short-term outlook, miner sentiment, and seasonal trends.
The Bull Market and Bitcoin’s Latest High
Zdużyć highlights that the cryptocurrency industry is currently in a bull market, with Bitcoin recently reaching a new 52-week high and experiencing the third wave of the bullish cycle. Additionally, there’s an increased correlation between Bitcoin and the S&P 500, indicating a favorable environment for Bitcoin. High time frame trends are also on the rise. Zdużyć identifies key macro support levels for Bitcoin at $29,000 and $27,000, showcasing growing demand driven by the anticipation of the approval of spot Bitcoin exchange-traded funds (ETFs) and the upcoming halving event expected in April 2024.
According to Zdużyć, BTC’s daily chart remains in an uptrend. He points to a target of $40,000, supported by the appearance of a “golden cross” pattern. Zdużyć also emphasizes the rising Simple Moving Average (SMA) 200 as “irrefutable evidence” of a dominant bull market since January. These indicators suggest the continuation of Bitcoin’s upward trajectory. Key support levels are identified at $35,000 to $35,800, and as long as Bitcoin remains above these levels, a bullish sentiment prevails.
Volatility and Sentiment
Currently ranging between $35,500 and $38,000, Bitcoin’s momentum bands are widening, indicating an increase in volatility. The rising 50-day Average True Range (ATR) trend supports this observation. The Fear & Greed Index stands at 69, indicating a mixed sentiment among market participants. However, miners, on average, are enjoying a profit increase of 23%. Considering these factors, Zdużyć maintains a positive outlook.
October saw a gain of 27% for Bitcoin, surpassing the average performance. Throughout history, November has been the best month for Bitcoin, with an average gain of 43% and a target of around $50,000. Additionally, December typically adds 7% to November’s closing price. Currently trading at $36,400, Bitcoin reflects a 5% and 22% profit over the past fourteen and thirty days, respectively. As we move forward, the focus shifts to whether Bitcoin’s price can maintain its crucial support levels and sustain its bullish uptrend, potentially reaching the monumental $50,000 milestone supported by historical patterns.
Bitcoin’s potential to reach $50,000 remains a topic of interest and speculation in the crypto community. While it has struggled to consolidate and face pullbacks, analysts like Zdużyć offer insights into various factors that may support a further upward trajectory for Bitcoin. The current bull market, increased correlation with the S&P 500, key support levels, and historical seasonal trends all contribute to the optimistic outlook. However, it is important to keep in mind the volatility of the market and the mixed sentiment among market participants. As Bitcoin continues its journey, it will be intriguing to see if it can break through the $38,000 barrier and make its way towards the significant milestone of $50,000.
