Bitcoin (BTC) Welcomes First Big Breakthrough Above $41,000
The digital currency ecosystem has bounced back from the significant downturn of the past week, with the combined crypto market cap surging to $1.61 trillion after a 3.69% increase in the last 24 hours. Bitcoin (BTC) is leading the charge, jumping by 3.97% to $41,688.27, marking its first major breakthrough since surpassing the $41,000 resistance point.
Bitcoin experienced a prolonged period of decline, and since January 12, it has not retested the $43,000 price mark amidst a bearish market. The sell-offs coincided with the approval of spot Bitcoin exchange traded funds (ETF) products by the United States Securities and Exchange Commission (SEC).
Unexpectedly, the approval of these products led to investors withdrawing funds from the Grayscale Bitcoin Trust (GBTC) into other issuers due to its exorbitant fees. This movement of funds was considered a significant liquidation event that shook the markets and prompted investors to divest their Bitcoin holdings.
Currently, there has been a slower pace in the exodus of funds from GBTC, which has helped Bitcoin maintain its grip on the $41,000 support zone.
Bitcoin is currently trading at $41,688.27, and its potential for further growth is influenced by various factors encompassing fundamental and technical considerations. On the technical front, the BTC/USDT daily chart indicates a relative strength index of 47.71, suggesting that the coin is not yet oversold and has the potential for a bullish trend.
Complementing the RSI are the Bollinger Bands, indicating a reversal in trend towards the upside. This potential for growth can be solidified when spot Bitcoin ETFs stabilize completely, with a decrease in funds exodus recorded.
Long-term prospects for Bitcoin are also influenced by the hype surrounding the upcoming Bitcoin halving event, which is expected to further support BTC’s upward momentum. According to projections, Max Keiser envisions an immediate target of $50,000 for the coin in the short term.
This article was originally published on U.Today
