Bitcoin

Bitcoin prices rise above $46,000

Bitcoin prices rise above $46,000

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Bitcoin prices rise above $46,000

Bitcoin prices have continued to climb lately, rising above $46,000 this morning and reaching their highest since May 17.

After barely surpassing that price around 8 a.m. EDT, and hitting $46,030.14, the digital currency fell back, declining to roughly $45,300 around 10 a.m., CoinDesk figures show.

The cryptocurrency increased to approximately $46,200 shortly after, before fluctuating close to the $46,000 price point for the next several hours, additional CoinDesk data reveals.

The digital asset reached an intraday high of $46,464.75 near 2:30 p.m. EDT, which represented a fresh, multi-month high.

In light of bitcoin’s recent price movements, several market observers weighed in on the situation, pointing to technical indicators and highlighting other key data.

Jason Lau, COO of cryptocurrency exchange Okcoin, offered some technical analysis:

“With bitcoin moving cleanly upward through $42k, the upper bound of the range it’s been stuck in for months, there are now eyes on a longer term target of ATHs of $64k,” he said.

“However, that might take a bit longer as there are some signs of fatigue, given this 55% run up,” noted Lau.

“RSI is 80+, back at levels in late February and mid March,” he stated, referring to the Relative Strength Index, a technical indicator used to determine whether an asset is overbought or underbought.

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“Both those times we saw BTC decline around 20% thereafter, but saw higher highs at a later date.”
David Keller, chief market strategist at StockCharts.com, also weighed in.

He noted that while the “range of 30,000 to 42,000 has served investors well in recent months,” “three key technical signals indicate a much more bullish configuration for Bitcoin.”

“First, the most recent pullback from the 42,000 level saw Bitcoin drop only to around 38,000 instead of retracing all the way back to previous support at 30,000,” said Keller.

“This was soon followed by the break above 42,000 which overall indicates an increased buying power and positive momentum.”

“Second, Bitcoin is now above its 200-day moving average for the first time since May,” he stated, adding that “The 50-day moving average is now sloping upwards for the first time since April.”

“These moving average signals show a rotation from a negative trend to a positive trend and suggest further upside potential,” noted Keller.

“Finally, the RSI is no longer showing a bearish divergence,” he stated.

“For the first half of 2021, every push higher in Bitcoin saw a lower peak in momentum.

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This bearish divergence suggested weakening price momentum and basically an absence of buyers,” Keller stressed.

“Now we see the RSI has broken that pattern of divergence, with the RSI becoming overbought on the most recent upswings.

This indicates a rotation from distribution phase to accumulation phase and a more bullish outlook should be warranted.”

Bitcoin prices rise above $46,000
Bitcoin prices rise above $46,000

Key Market Data
In addition to offering technical analysis, market observers spoke to important market data and what it means for the world’s most prominent digital currency.

“All signals are showing that Institutions have been going long and are accumulating,” said Charlie Silver, CEO of Permission.io.
“The weak hands have sold through this cycle and the strong hands have been buying.”

Sean Rooney, head of research at Valkyrie Investments, also offered some perspective, stating that “The BTC sold in the May drawdown has been re-accumulated and moved off exchanges in many cases according to on-chain metrics.”

Bitcoin’s Price Outlooks
Considering bitcoin’s latest price fluctuations, several analysts offered their takes on where the digital currency will likely go next.

Rooney noted that he expects “the price of bitcoin to stay in this range between $40,000 and $50,000 through the end of summer.”

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Lau offered a similar point of view, but spoke to the implications of policy proposals that are currently being considered by U.S. lawmakers.

“Looking ahead, we would expect to see some consolidation at these levels, especially as the market digests policy changes and their subsequent impact,” he stated.

Silver also commented, noting these regulatory considerations.

Bitcoin prices rise above $46,000
Bitcoin prices rise above $46,000

“We may see another test of support  but the odds are high we can see new highs by the end of the year,” he stated.

“If regulations pass that are not harmful to the crypto industry we can see massive upside.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.

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