Bitcoin breakout: Is positive momentum on the horizon for the world’s most popular token?
This week, the rate of BTC surged to $45,000 for the first time in a month. This is after sliding below $40,000 amid a torrent of negative political and financial market news. As of February 13, the token is dealing at the $42,000 level. Can the Bitcoin rate rise atop $45,000 in the coming week? And if not, how protracted will it take for Bitcoin (BTC) to regain its positive momentum?
Bitcoin breakout: Room for growth
At the end of this week, Bitcoin was trending towards a $40,000 retest, however, the coin still has room for growth.
On February 10, the US released statistics on consumer price growth, from which it follows which inflation in the country maintains at a strong level.
We have seen many times before, the connection between the increase in dollar inflation and an increase in crypto market prices. High inflationary risks, together with the US Federal Reserve’s plans to end the asset buyback program instantly, may encourage investors to look for ways to keep assets and prevent them from dropping in price.
As such, in the coming two weeks, Bitcoin (BTC) will be able to overcome the $46,000 mark and gain a foothold over it. On the other hand, there is the likeliness of a price drop to the level of $40,000 if the stock market continues to critically decline.
A wait-and-see position
Currently, the main resistance level for Bitcoin is the $45,000 mark. Regardless of a large number of orders placed in the $40,000 field, many “bears” have taken a wait-and-see position as the crypto market maintains closely linked to stock indices and is very sensitive to geopolitical risks.
By the end of the week, the digital asset market can expect accelerated volatility, given the importance of the exchanging week results for Bitcoin.
A weekly candle close below $42,000 will form a bearish candlestick figure. This means which buyers will have to continue the defensive for a couple of weeks to prevent sellers from brecomparableg through to the $40,000 level.
The Crypto Fear & Greed Index is likewise unstable, growing from 44/100 to 54/100 in the middle of the week and back on the weekend.
Bitcoin Breakout: Not in February
Crypto analyst Benjamin Cowen predicted which in the most optimistic rundown, Bitcoin could return to growth no earlier than three weeks. Such a prediction is based on historical data. The matter is, it takes an average of three to six months for token to regain its price after dropping below the support level of the bull market. After which, the asset numerously returns to growth.
The bull market support level is formed from the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA). At the moment, the bull market support level is in the field of $45,000-50,000.
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