The goal price of $50,000, which was last tested on December 28, 2021, has been surpassed by the price of bitcoin.
Bitcoin might continue its upward trend and break beyond the psychological barrier of $60,000, which was last touched on November 21, 2021.
The relative strength index (RSI) is already reading far over 70, which indicates that Bitcoin is already significantly overbought.
The price of Bitcoin (BTC) returned to the highs it reached in late 2021 on Monday, a move that the Bitcoin community considers to be a significant milestone. It arrives before the halving event, and as a result, it satisfies the pace for what might potentially initiate the next bull cycle in the bitcoin market.
Wall Street is making significant purchases of Bitcoin.
Since January 10, when the United States government made history by approving spot Bitcoin exchange-traded funds (ETFs), the number of people buying bitcoin has soared. It has been reported that Wall Street may be purchasing Bitcoin in large quantities, with statistics indicating that they may be purchasing up to 12.5 times more Bitcoin per day than the network is able to create.
Anthony Pompliano, a venture capitalist and entrepreneur who is also a Bitcoin investor, has said that "Bitcoin has become Wall Street's favorite asset." In addition, Pompliano emphasized that Wall Street "not just likes, but loves Bitcoin." He attributed the massive interest in Bitcoin to the newly introduced spot exchange-traded funds (ETFs), which, in his view, have established a new benchmark in the history of this category of commodity.
Eighty percent of all the Bitcoins that are now in circulation on the market have not been moved during the course of the last half year, according to the estimates that Pompliano has made. Additionally, the total amount of Bitcoin that may be exchanged is around $200 billion. As a result of this, he draws the conclusion that exchange-traded funds (ETFs) have been successful in capturing five percent of the total supply of bitcoin that is now being traded on the market, which is just thirty days after the investment product was introduced to the market.
Ricardo Salinas, a Mexican millionaire, made the following statement after reaching the $50,000 milestone: "You have to know how to be patient, not get scared when it goes down and buy" it.
Forecast for the price of bitcoin when Wall Street goes crazy with spot exchange-traded funds (ETFs)
The price of Bitcoin has retraced after reaching the psychological threshold of $50,000. This comes as a result of traders being quick to cash in on the gains the cryptocurrency experienced. Additionally, it exhibits the usual corrective pattern that is associated with an overbought asset, which is characterized by a Relative Strength Index (RSI) value that is greater than 70.
Given that the Relative Strength Index (RSI) continues to point in a northerly direction and indicates that momentum is increasing, the upward potential for the price of Bitcoin is still there. Additionally, the Moving Average Convergence Divergence (MACD) indicator is located above its signal line, which is located in the orange band, and both indicators are in the positive region.
An increase in the amount of purchasing pressure might cause the price of Bitcoin to make a definitive rise over the blockage of $50,000, with the possibility of an extension to the psychological level of $60,000. A move of this kind would represent a twenty percent increase over the existing levels.
On the other side, if there is an abundance of profit-taking, the price of Bitcoin may fall even lower, perhaps entering the supply zone that is now providing support between $44,300 and $46,760. The continuance of the decline would be confirmed if the price were to break and close below the midline of this order block, which is located at $45,554.
If there is a directional bias of this kind, the price of Bitcoin may lose support owing to the rising trendline, which would allow it to test the $41,880 support level, or in the worst case scenario, it might roll over to $40,643.
