- Bitcoin has ended its recent sideways movement to surge to a new yearly high.
- The rally follows strong investor confidence in bull market conditions.
- Analysts have tipped the recent rally to continue, with one asserting that the assetโs all-time high is in view.
After ranging tightly between the $50,000 and $52,000 price points for most of last week, Bitcoin appears to have regained its momentum. The asset has tapped a new yearly high above $53,000 in the past few hours.
Bitcoin Resumes Uptrend
Bitcoin has broken out of the range it has been trading in since last week, potentially confirming the range as a bull flag pattern formation. In the past 8 hours, the asset has jumped from lows of about $50,950 to highs of around $53,640, trading at this level for the first time since 2021. However, at the time of writing, the asset has shed some of its gains to trade just below the $53,500 price point.
The recent rally comes amid rising demand as investors continue to express confidence in bull market conditions considering continued spot ETF inflows and the approaching halving. As recently highlighted by prominent crypto analyst Ali Martinez, Glassnode data shows that 150 new addresses holding over 1,000 BTC have been created in the past month.
All-Time Highs Pre-Halving?
Reacting to Bitcoinโs break above $53,000, prominent crypto analyst โDuo Nineโ argued that at Bitcoinโs current pace, the asset is likely to break above its all-time high of around $69,000 before the halving expected in April 2024.
โPrepare mentally for 10k candles a day,โ he warned.
While not all analysts are as bullish as Duo Nine in the short term, most agree that Bitcoin is set to reach new highs. Earlier in the day, Ali Martinez suggested that a solid close above $53k could launch Bitcoin to $60,250 in the short term, citing the formation of a megaphone continuation pattern on the daily candle chart.
Matrixport-linked 10x Research has tipped Bitcoin to reach the $63,000 price point by March.
On the Flipside
- The recent Bitcoin price rally surprised some analysts, as they expected a deeper price correction.
- On February 20, Bitcoin options trades suggested that several traders believed that Bitcoin would fall as low as $47,000 before the halving.
Why This Matters
Bitcoin is the largest crypto asset by market capitalization. The crypto market tends to move in the direction of the market leader. The recent rally suggests the asset is resuming its uptrend, further strengthening bull market sentiments.
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