Bitcoin has reached its highest point in over two years, with overbought indicators signaling a potential correction.
FUNDAMENTAL OVERVIEW:
Bitcoin continues its sharp ascent, propelled by robust inflows into a new US-listed ETF, as more than one trillion dollars in investments in Bitcoin were recorded on Wednesday.
In early Thursday trading, the price surged to its highest level in over two years. The previous day’s 4.3% gain closed well above the psychological barrier of $50,000, marking the first time since mid-December 2021.
The gains in the first two weeks of February have already exceeded 23%, on course to achieve the second significant weekly advance and poised for the most substantial monthly gains since October 2021.
Bitcoin (BTC) continues its upward trajectory, reaching new highs, while investors remain cautious about profit-taking. Simultaneously, Gary Gensler has distinguished BTC from other currencies.
BTC has the potential to increase by 5% to $55,000, driven by growing momentum and a robust presence of bullish sentiment in the BTC market.
BITCOIN TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Bitcoin is currently trading within an up channel.
Bitcoin is positioned above all Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 52476.82
Immediate support level: 51708.00
HOW TO TRADE BITCOIN
Following a notable price increase, Bitcoin experienced a correction before resuming its upward trajectory. Currently, Bitcoin is moving higher, displaying a structure of higher highs. Anticipating a minor correction in its price, a potential opportunity to initiate a long position may arise on a dip.