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Bitcoin “Outlook Remains Bullish,” As Long As This Stays True: Analyst

An analyst has explained that the outlook for Bitcoin should remain bullish as long as the cryptocurrency’s price remains above this level.

Bitcoin Has Strong On-Chain Support Above $41,800

In a new post on X, analyst Ali talked about the various BTC support and resistance levels from an on-chain perspective. In on-chain analysis, the strength of any support or resistance level depends on the amount of Bitcoin that the investors bought at said level.

The chart below shows what the distribution of the different BTC price ranges currently looks like based on the concentration of holder cost basis that they carry.

Bitcoin Support & Resistance

As displayed in the above graph, the $41,800 to $43,100 range hosts the acquisition price of most Bitcoin out of all the price ranges listed. To be more specific, about 2.4 million addresses acquired 1 million BTC within this range.

The cost basis is naturally of immense significance for any investor, as the spot price retesting can flip their profit-loss situation. As such, holders become more likely to show some move when a retest like this happens.

A holder in profit before the retest might tend to buy more when the retest happens, as they might believe this same level that proved profitable earlier would do so again.

On the other hand, loss holders might want to sell at their break-even level since they may fear the cryptocurrency going down again, putting them underwater again.

These buying and selling moves aren’t enough to move the market when just a few investors are making them, but if a large number of investors have their cost basis inside a narrow range, the reaction could become significant.

Since those above $41,800 to $43,100 range is dense with investors, it should be an essential on-chain range. The spot price is floating above the range so that these prices could act as a support barrier for the asset. Based on this, Ali explains, “as long as Bitcoin maintains its position above $41,800, the outlook remains bullish.”

The chart shows that the Bitcoin ranges above the price aren’t carrying the cost basis of that many investors. This could imply that there isn’t much resistance ahead for the coin.

The analyst notes that this lack of major resistance also strengthens the potential for the cryptocurrency to stay at the current levels or push towards the higher ones.

BTC Price

Bitcoin has been gradually making its way back up after the recent crash, with its price climbing towards the $43,800 mark. The below chart shows how the asset has performed during the last few days.

Bitcoin Price Chart

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Bitcoin Rests Tentatively Above $31,000, Bull Rally Or Trap?

The price of bitcoin has been doing significantly well compare to where it was about a week ago. It has now recovered above a highly coveted point, returning some faith back into the market. However, the position where the digital asset currently resides is one that is unstable. Even though it seems to have found its footing above the $31,000 level, there is still the question of what this recovery actually means in the short term.

Fakeout Or Breakout?

It is important to note that the price of bitcoin had trended for a long time between $29,000 and $30,500. It spent quite some time here as the cryptocurrency had consolidated for the longest time. With its most recent recovery, it had broken out of this consolidation point. But there hasn’t been enough by the way of recovery to simply be sure that this is one that will continue. 

Related Reading | Billionaire Tim Draper On What Will Trigger The Next Bitcoin Bull Market

Indicators point to this being a potential critical turning point for the price of bitcoin. Where it goes from here will likely determine the path of the digital asset for the rest of the month. For the cryptocurrency to really establish this as a breakout position, it would need to range upwards and break, its next significant resistance point which lies at $34,500.

Now, given that bitcoin is still languishing at the $31,000 territory, a rally towards $34,500 would need to be accompanied by tremendous momentum from the market. However, if this happens, then the digital asset can establish support at the same point that provided a good cushion at the beginning of the year.

BTC in critical position | Source: Arcane Research

As for a reversal, a potential takeout would have serious implications for the crypto market. Granted, the digital asset has managed to establish great support at $29,000, as evidenced by market movements in the last few weeks. However, a break below $29,000 will likely see bitcoin test the $25,000 support level before it begins another recovery trend.

Bitcoin Turning Bullish In Short-Term

The charts show a highly favorable short-term price of bitcoin but that is only dependent on how well it holds on to its current price. Since its recovery above $31,000, the digital asset is now comfortably trading above its 20-day moving average. This points to a slowdown in the sell-offs in the market and possible recovery towards 50-day moving average levels.

BTC continues recovery trend | Source: BTCUSD on TradingView.com

Losses in bitcoin have also slowed significantly since it hit its ninth red weekly close. This losing streak has been its longest in history and has tired even sellers out. A welcome development for the market.

Related Reading | Bitcoin Exchange Outflows Suggest That Investors Are Starting To Accumulate

If this is the case and sell-offs continue to drop, the reversal could be a potential breakout that could set the market on another bull rally, ending the losing streak. 

Bitcoin is trading at $31,557 at the time of this writing. It is headed for its first green close in more than two months.

Featured image from MARCA, charts from Arcane Research and TradingView.com

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Cathie Wood’s ARK Invest Puts Bitcoin At $1 Million By 2030

Investment firm ARK Invest has revealed its bullish outlook for bitcoin. It is not the first time that the company would be taking such a bullish stand on the digital asset. But it is the first time that it is putting the price of the cryptocurrency at such a high price point. This comes following the recent market crash that saw bitcoin lose about 50% of its all-time high value but this has done nothing to deter the firm from seeing a largely successful future for the digital asset.

Bitcoin At $1 Million

The latest prediction from the investment firm came in a recently published report that held a particularly promising outlook for the blockchain and the technologies that surround it. This included the application of public blockchains, of which the report put forward that bitcoin was the “most profound application” of this.

Related Reading | Bitcoin Inflows Suggest Institutional Investors Are Moving Back Into The Market

For the value of bitcoin itself, the points expressed in the report held closely to that of its leading figure, Cathie Wood. Wood had earlier said that she believed that the price of bitcoin would hit the $500,000 mark in the next five years, propelled forward by institutional investors moving just 5% of their portfolios into the digital asset. The report suggested that they believed this number would double in the following half a decade, putting its price at $1 million by 2030.

BTC resumes another downtrend | Source: BTCUSD on TradingView.com

Citing market research carried out by the firm, it put the growth rate of bitcoin in the next decade at 25-fold, saying that the digital asset possessed significant appreciation potential over this time period.

“According to our research, Bitcoin’s market capitalization could scale more than 25-fold in the next decade, with each exceeding $1 million in value,” the report read.

Where Does Ethereum End Up?

Bitcoin was not the only digital asset that received much praise and positive outlook in this report. As stated above, the report’s stance on the market, in general, was gleaming and Ethereal was no different in this regard.

Ethereum which has been one of the fastest-growing crypto projects has been put forward as being a valuable investment option going forward and ARK Invest does not disagree. It put the second-largest cryptocurrency by market cap at a whopping $20 trillion market cap by 2030.

Related Reading | Goldman Sachs: Mainstream Adoption Won’t Boost Bitcoin Price

Given that this time frame is less than a decade away, it means that the digital asset would have to grow at least 7,000 times from the current market value to hit this valuation. However, ARK Invest remains confident in the digital asset’s ability to appreciate due to its dominance on financial services existing on the blockchain.

If ethereum does reach the $20 trillion market cap, then the asset’s value would rise to around $170,000-$180,000 apiece. Still less than half of bitcoin’s expected valuation by the firm, but a growth rate that would rival even the best of the best in any financial market.

Featured image from Blockchain News, chart from TradingView.com