Bitcoin has surged by 6.52%, bouncing back from a low of $53,898 to reach $56,979, indicating a positive short-term trend. Notwithstanding the rise above $56,000, analysts caution about potential declines towards approximately $47,000.
Presently, the global cryptocurrency market is witnessing a revival, as Bitcoin has rebounded from a recent dip of $53,489 to exceed the $56,000 threshold. Currently priced at $56,650, Bitcoin shows a 3.87% upward trend over the past 24 hours. This recovery follows substantial inflows of $143.1 million into U.S.-based Bitcoin ETFs, underscoring renewed investor engagement.
Furthermore, Bitcoin’s price is surpassing the 9-day simple moving average (SMA) in the 1-hour BTC/USD trading pairs, typically indicating a short-term bullish trajectory or positive market momentum. This suggests that Bitcoin’s recent price actions have surpassed the average price of the previous nine days.
Despite this rebound, altcoins have taken the lead, with Bitcoin dominance in the market dipping to 53.87%.
Will Bitcoin Maintain Its Recovery Above $56,000?
Divergent views are surfacing among prominent crypto analysts: while some argue for market stability based on consistent on-chain metrics, others, like renowned analyst Ali, anticipate potential downturns. Even amid price fluctuations, an on-chain analyst believes the market stability endures without widespread fear or panic. Pointing to the Bitcoin Daily Realized Profit Loss ratio, the analyst suggests that unless more addresses exhibit losses—indicating panic-driven selling—the market could withstand further declines.
On the contrary, the latest resurgence might not signify a sustained upward trajectory, as crypto analyst Ali expresses concern about Bitcoin’s market positioning. Despite the recent price recovery, Ali predicts a probable decline towards the $47,000 mark.
Ali’s analysis zeroes in on Bitcoin’s support levels, which he deems insufficient to uphold a prolonged bullish drive. Ali underscores that for Bitcoin to trigger a bull market resurgence, it must “close and uphold above $61,000.” Yet, given the prevailing market conditions, achieving this appears increasingly speculative.
Should Bitcoin maintain its ascent and stay above the $56,000 mark, it is likely to hit resistance levels at $57,580, followed by $60,000. Breaking through these barriers could propel Bitcoin towards $61,890 and $62,500.
Conversely, failure to sustain above $56,000 could steer Bitcoin towards critical support at $55,300, potentially leading to a drop towards the $53,000 zone. Breaching this support level may usher Bitcoin into a bearish phase, aligning with expert predictions of a slump to $47,000.