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Saturday, June 15, 2024

Bitcoin (BTC) Inches Closer to $50,000 with Key Resistance Level Ahead

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Still far short of its 2021 peak of almost $69,000, Bitcoin has been steadily climbing higher despite the ETF-induced correction. This week, it surpassed $48,000 and $49,000, a level not seen in nearly two years, with the $50,000 target now in focus.

However, data suggest that there’s a crucial hurdle that Bitcoin needs to overcome before eventually claiming the target.

  • According to the popular on-chain intelligence platform Intotheblock, Bitcoin is eyeing the $50,000 mark but faces a crucial obstacle.
  • With over 800,000 addresses having accumulated approximately 270,000 BTC at an average cost of $48,491, these holders were at a minor loss earlier today. However, as BTC broke above $49,000 for the first time in about two years, they have gone into green territory.
  • Another analyst believes that Bitcoin could potentially encounter a brief price correction, with the next significant resistance level for Bitcoin positioned much higher, around $57,000.
  • Bitcoin’s recent surge coincides with an increasing appetite for risk among investors, and specifically, strong demand for spot Bitcoin ETFs in the US introduced on January 11.
  • Despite being newly introduced to the market, the funds have already amassed billions in investment from those seeking exposure to Bitcoin without the complexities of direct ownership and storage.
  • Since then, Bitcoin whales have been on a buying spree. In fact, such investors have acquired 140,000 BTC – worth around $6.16 billion – within the last three weeks.
  • This surge in whale holdings indicates their confidence in the asset’s long-term potential, undeterred by recent market fluctuations.
  • Meanwhile, Bitcoin’s surge past $47,000 was also important as the market is currently at a “turning point,” hovering on the brink of what could be the onset of a full-fledged bull run.

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