- Discussions around Bitcoin’s potential rise to $50,000 dominated the market.
- The Supertrend flashed a buy signal which could send BTC to $54,000.
- Spot Bitcoin ETF inflows outpaced outflows, suggesting a bullish momentum.
According to on-chain analysis tool Santiment, Bitcoin’s (BTC) rise to $48,000 has caused euphoria among traders in the market. In the last seven days, BTC’s price has increased by 13%, leading traders to speculate about support and resistance zones for the coin.
From the post, traders were anticipating Bitcoin to rise to $50,000 in the coming days. This projection was evident in the social dominance of the words “Bitcoin” and “50k.” Social dominance gauges the extent of discussion an asset or a phrase has across different social channels
BTC’s Bullish Thesis Continues to Grow
At press time, Bitcoin’s social dominance was 4.14%, meaning it had the highest share of discussion among cryptocurrencies in the top 100. Furthermore, the social dominance of the “50k” phrase rose to 0.31%.
Bitcoin’s movement on the daily timeframe showed that the coin had the potential to revisit $49,000. Using the Supetrend indicator, BTC flashed a buy signal as the price jumped above the red region.
Typically, if the red part of the Supertrend is above BTC’s price, it would have suggested a sell signal. Furthermore, the green area of the indicator was also below Bitcoin’s price, confirming that the momentum favored a bullish thesis.
In a case, BTC breaks above $48,000 once more, Bitcoin could add another 15% increase. Bitcoin could change hands around $54,000 just before the April halving if this happens. The last time BTC flashed such a signal was in October 2023.
At that time, Bitcoin’s price was a little over $27,000. A few months later, specifically, in December, BTC hit $44,000, representing a 38.6% climb in less than three months. The Relative Strength Index (RSI) was at 71.72, indicating that buying pressure was dominant.
Eyes on a New ATH for Bitcoin
In a highly bullish situation, BTC could hit a new All-Time High (ATH) in a few months. If the price action follows its historical performance, BTC might hit $65,526 before the end of the second quarter.
But before Bitcoin hits a new ATH, it might undergo a 10% to 30% correction. Beyond the technical outlook, another factor that could affect BTC’s price is the activity with Bitcoin ETFs. For some time, Grayscale has been offloading Bitcoin in droves. This was one of the factors that led Bitcoin to fall to $40,000.
However, recent data showed that the sell-offs have been minimal. According to The DeFi Investor, net inflows from other ETFs have also outweighed Grayscale’s outflows. For instance, inflows of February 9 were worth $430 million while Grayscale’s outflows amounted to $100 million.
Should the inflows continue to outpace the outflows, Bitcoin might hit $50,000 faster than projected. Also, a new ATH could come weeks after the halving.
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