Bitcoin Targets $48,000 As “Accumulation Phase” Has Begun
Investor sentiment across the crypto ecosystem has clearly turned positive over the past week, despite events around the world. Currently, Bitcoin (BTC) is back above $43,500 and many altcoins are also posting double-digit gains.
Cryptocurrency Fear & Greed Index | Source: Alternate
The ongoing conflict in Ukraine and recent moves by governments to restrict access to banking services may have helped shine a light on the value of crypto holdings by offering some safeguards against uncontrollable events and what some see as excessive government interference.
Data from TradingView shows bitcoin price floating in the range of $43,350 – $45,400 on March 2 as the world awaits some form of resolution to the current conflicts.
BTC/USDT daily frame price chart | Source: TradingView
Here’s what some analysts are saying about Bitcoin’s recent price action and its target for the coming weeks.
Bitcoin accumulation has started
Bitcoin’s sideways movement is largely influenced by the fact that it “entered a volume gap,” according to crypto analyst Rekt Capital, who suggests lower demand in the current price range.
#BTC has entered a volume gap
Volume gaps tend to become quite complete
Major volume gap resistance lies ahead in the ~$48,000 region, which happens to be the middle part of the macro range
— Rekt Capital (@rektcapital) March 2, 2022
Ki Young Ju, CEO of on-chain analytics firm CryptoQuant provided Evidence that Bitcoin is likely to move higher.
“The bitcoin accumulation phase has begun.”
UTXO (Bitcoin Unspent Transaction Output) bands. | Source: Twitter
According to Ki, “newbies who entered the market last year are turning into long-term holders as Bitcoin’s market cap, which has been held for more than six months, now accounts for 52% of the total cap, as opposed to 13% on the most recent cyclical peak.
“The previous low ($28,000) is unlikely to be reached as newbies will wait for other newbies in the next cycle.”
Rate hikes could be the next big catalyst
David Lifchitz, Managing Partner and Chief Investment Officer at ExoAlpha, has provided a more in-depth analysis of the impact of current events on the crypto market, which has seen Bitcoin’s strong gains since $37,000-$44,000 “within hours of Russian President Vladimir Putin” saw the ban on foreign exchange transfers”.
According to Lifchitz, the rapid uptrend “stagnated at $44,000, consistent with the 100-day moving average, which is also near the top of the $33,000-45,000 range that Bitcoin has been trading in for weeks.” He sees the $45,000 resistance level as very difficult to clear right now, and stresses that the “next hurdle” is $51,000 before bitcoin can attempt an all-time high (ATH) above $64,000.
On what may happen next in the short-term, Lifchitz suggested that “Bitcoin could tumble a bit towards the mid-range of $33k-$45k” noting that “it will be hard to see Bitcoin break above 45k $100,000 and then without $51,000 some major catalyst breaks.”
“There will be an FOMC meeting on March 16th where the Fed will decide whether to hike rates. Technically, a rate hike “strengthens” the dollar and thereby “weakens” bitcoin, so it will be interesting to see how bitcoin reacts when the Fed hikes rates in 2 weeks, but the impact could be insignificant.”
Vertical accumulation is a “possibility”
The latest bitcoin historical performance information came from altcoin analyst Sherpa, who has shown that the current range is a significant area of support and resistance since last May.
$BTC: Watch 40k to see if we can get a pullback. If this is like September we will see a vertical accumulation and #Bitcoin won’t go down much at all (except on low timeframes) for a while. I guess I won’t be able to do that in the short term. pic.twitter.com/hHCiF2CC7H
— Altcoin Sherpa (@AltcoinSherpa) March 2, 2022
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According to Cointelegraph