Bitcoin is the most popular choice of seasoned crypto investors because of its consistent returns and capability to threaten the dominance of fiat currencies. After a steady fall from decent highs, Bitcoin has once again emerged as a strong cryptocurrency with a lot of sentiment still pushing the prices to new highs.
BTC has recently crossed its 1 trillion market capitalization mark. It is not just a sentiment that has helped it reach these heights, but buyers’ belief and consistent participation at every dip.
Bitcoin Price Analysis
Bitcoin has broken out of its immediate resistance zone and is headed towards the $60,000 mark with much more decisive price action. Extreme bullish sentiment can be witnessed despite a fall in daily transaction volumes.
Bitcoin price action can be considered as a supply and demand concept. Every time BTC falls from a decent high value, the fall carries a good entry position for both new and seasoned investors. The decline from close to $53,000 to $40,000 was a big blow to the bullish sentiment. Since BTC has verified buying at dip theory time and again, it was beneficial for those who bought this cryptocurrency close to the $40,000 mark.
Bitcoin has broken through its immediate resistance of $50,000 and $55,000 and is now headed towards the ultra-volatile level of $60,000. There was a minor consolidation of around $47,000 because of its previous consolidation around the same mark. Any selling pressure from these levels can push BTC to a maximum of $50000 which should become a new psychological dip level and help push the BTC price to fresh highs according to our Bitcoin price prediction 2021.
RSI is trading at phenomenal highs of overbought zones backed by solid buying. But since this rise in buying sentiment is not supported by increasing volumes, it could mean that either seller has taken rest or the market is driven by very small factors.
200 DMA level is still active, close to the $44,000 mark. On daily charts, too, we can witness the development of higher lows on each consecutive candlestick. Breaking the previous swing high of $52900 has been converted as a strong buying sentiment.