$50,000 Bitcoin imminent? Several indicators point to a possible major breakthrough

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As the 2023 Bitcoin (BTC) rally continues, the cryptocurrency recently hit a 10-month high above $30,000, benefiting from generally positive market sentiment. Investors are now eagerly awaiting the next price target for Bitcoin, especially with the ongoing economic uncertainties.

Along these lines, in an April 15 tweet, Stockmoney Lizards, a pseudonymous cryptocurrency analyst, said the current gains are part of a pre-halving rally that mirrors the roughly 320% surge in 2020 after bottoming out. During both time frames, Bitcoin also hit a 38.2% Fibonacci retracement.

Looking ahead, the analyst noted that Bitcoin hitting $49,000 remains a possible target for the next few months based on historical price movements.

Bitcoin price analysis chart. Source: Trading View

It should be noted that the next Bitcoin halving is expected to take place in April or May 2024, when the block reward drops to 3.125. Halving events are seen as bullish sentiment for Bitcoin.

Bitcoin new resistance levels

Bitcoin’s latest surge partly came as the global economy is experiencing a decline in inflation, suggesting that central banks may soon shift their policies towards monetary easing. Consequently, crypto trading analyst Michael van de Poppe, in an April 14 tweet, suggested that Bitcoin looks strong overall, but warned investors to expect “slight corrections in an uptrend.” .

“I marked $31.7-32,000 as an important resistance point. However, $25,000 was the level everyone wanted to buy. It will probably go to $28.5,000 and then no one will buy. I would rather focus on $29.7,000,” he said.

Bitcoin price analysis chart. Source: Trading View

Elsewhere, the Bitcoin rainbow chart indicates that BTC may have embarked on a fresh rally ahead of the halving event. According to the chart, as of April 15, BTC is currently in the “Accumulate” zone after a period of consolidation in the “Basically a fire sell” zone.

Bitcoin rainbow chart. Source: Blockchaincenter

Interestingly, this pattern resembles a previous trend in March 2020, days before the halving event. In March 2020, Bitcoin broke out of the “Basically a fire sell” zone while trading below $6,000. This event marked an important turning point for the cryptocurrency, triggering a price bottom that ultimately led to an increase in value towards the 2021 bull run. Ultimately, this uptrend resulted in what BTC hits an all-time high of nearly $69,000.

The tool serves as a valuable resource for investors to track future Bitcoin price movements. It uses color bands that follow a logarithmic regression and rates Bitcoin’s historical price performance, giving insight into the asset’s long-term movements.

Bitcoin’s latest gains come after the asset reacted positively to the banking crisis and the Federal Reserve’s interest rate hike, leading to consolidation. At the same time, following the release of the Nonfarm Payrolls report, which showed a decline in March, the market began to see renewed bullish activity. Inflation data also pointed to lower consumer prices in China, which helped push Bitcoin above $30,000 once again.

bitcoin price analysis

At press time, Bitcoin was trading at $30,446 with slight corrections of more than 1% over the past 24 hours. On the weekly chart, Bitcoin is up nearly 9%.

Seven-day Bitcoin price chart. Source: Finbold

Meanwhile, Bitcoin’s one-day technical analysis, taken from TradingView, is dominated by bullish sentiment. A summary of the gauges is for “buy” at 14, while the “moving averages” recommend “a strong buy” at 13.

Bitcoin technical analysis. Source: Trading View

Right now, Bitcoin proponents believe the asset is at a pivotal phase in its adoption journey, especially with the US dollar facing an assault on its status as the world’s reserve currency. Bitcoin’s chance of hitting $50,000 will also depend on the broader economic trajectory and external factors such as the regulatory outlook.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.

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