Tomiwabold Olajide
This represents a strong demand zone where over 1 million addresses have purchased more than 544,870 BTC
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Bitcoin (BTC), the largest cryptocurrency by market capitalization, could face a critical situation as it struggles to recapture the $52,000 mark.
According to crypto analyst Ali, if BTC fails to break through this level soon, it could trigger an 8 percent correction that could send the price down to $48,000 or lower to $46,500.
According to data from TradingView, BTC has been moving in a tight range over the past few days since hitting a high of $52,890 on February 15.
According to Ali, if Bitcoin fails to quickly recapture $52,000, it could trigger a wave of selling pressure that could push the price to the next support zone at $48,500 or even to $46,500. This price range represents a strong demand zone as over 1 million addresses purchased over 544,870 BTC, indicating significant support.
At the time of writing, BTC was trading down 0.06% at $51,736.
Catalysts That Could Affect BTC Price
On-chain analytics firm IntoTheBlock presents key factors that could impact BTC price in the coming days in a recent analysis.
Bitcoin price is currently 24.78% away from its November 2021 all-time high of $69,000, but bullish catalysts remain.
BTC/USD daily chart, courtesy of TradingView
According to IntoTheBlock, halvings, ETFs and easing are the big catalysts on the horizon that could push BTC to all-time highs before the summer.
The Bitcoin halving is scheduled to take place in mid-April 2024. In it, the amount of rewards granted to miners per block will be halved from 6.25 BTC to 3.125 BTC. As for the Bitcoin price, a rapid recovery in the hash rate would help ensure the security of the Bitcoin blockchain and thus have a positive impact on the price.
Another catalyst for Bitcoin is likely to be the continued inflows from spot ETFs. Just a month after their launch, Bitcoin ETF products recorded over $4 billion in new inflows.
This could lead to increased demand for Bitcoin as issuance supply declines post-halving, leading to potentially explosive momentum for Bitcoin price.
About the author
Tomiwabold Olajide
Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducts comprehensive price analysis, and shares predictions on estimated market trends. Tomiwabold graduated from the University of Lagos.
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