Bitcoin Price Rebounds Above $65k Amid Heightened Greed

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As a researcher with a background in cryptocurrencies, I’m thrilled to see the recent price rebound of Bitcoin and the subsequent surge in the altcoin market. The Doji candlestick we saw last week was a clear indication that buyers were aggressively accumulating, and the bullish trend has continued into this week.

As a crypto investor, I’ve observed that Bitcoin (BTC) concluded its recent correction period following a Doji candlestick formation in the previous week. This pattern suggests strong buying interest from investors. At the moment, Bitcoin is trading bullishly and hovering around $65,232, representing a 2.4 percent increase in value over the past 24 hours.

After Bitcoin’s significant price recovery, the altcoin market mirrored this trend, leading to a surge in the overall crypto market capitalization by approximately 3%, reaching roughly $2.54 trillion.

Bitcoin Price Gets Ready for New ATH

As a researcher studying Bitcoin’s price movements, I have identified a stable support range between $60K and $63K over the past week. With this established foundation, Bitcoin now appears poised to revisit its all-time high (ATH) of May, which stood at a significant price level. The daily Relative Strength Index (RSI), an essential technical indicator, mirrored the market’s recovery by closely following the underlying value. Notably, today, as Bitcoin’s price against the US dollar surged above $63k, the daily RSI also managed to break free from its downward logarithmic trend.

#Bitcoin
I was planning to share this information tomorrow, but my enthusiasm just won’t let me wait. The price chart of Bitcoin ($BTC) shows an uncommon candlestick pattern called a “reversal hammer,” similar to the one it had in January 2024. This pattern often precedes a significant price increase.
— Mikybull 🐂Crypto (@MikybullCrypto) May 5, 2024

As a crypto investor, I believe that for Bitcoin to continue its bullish trend and reach new all-time highs (ATH), it is essential that the daily price averages around the $67,000 mark and consistently closes above this level. Additionally, regaining the daily 50 moving average as a support level is crucial in maintaining the bullish momentum.

Recent on-chain activity indicates that short-term Bitcoin investors have been transferring their profits to the altcoin sector in preparation for an upturn in the alternative cryptocurrency market. Meanwhile, the dominance of Bitcoin in weekly trading has persisted, but the Relative Strength Index (RSI) has started to display a bearish divergence.

The ETH/BTC chart exhibits a potential reversal pattern that mirrors the crypto market’s bullish trend from 2021.

Top Reasons to Bet on BTC

In simpler terms, the cryptocurrency market’s darkest period is over, with Sam Bankman-Fried (SBF) and Changpeng Zhao, two prominent figures from the industry, currently in custody. With regulatory frameworks for cryptocurrencies becoming clearer worldwide, particularly Europe‘s MiCA, it can be assumed that the widespread adoption of web3 protocols and digital assets is progressing.

I. With the recent approval of spot Bitcoin ETFs by the United States and Hong Kong, it’s clear that more global jurisdictions will soon follow this trend. II. As an analyst, I have observed a significant surge in institutional interest for Bitcoin and other digital assets. III. This demand stems from the growing need to tokenize real-world assets (RWA) on blockchain technology, offering increased security, liquidity, and efficiency in asset management. IV. In essence, the future looks bright for the integration of digital assets into traditional financial markets.

From my perspective as a researcher, the Bitcoin blockchain has gained considerable traction among web3 developers aiming to create layer two solutions with integrated smart contracts. Currently, the estimated value of these Bitcoin layer two projects hovers around $3.5 billion, while their daily trading volume amounts to approximately $106 million.

Price Targets

Multiple predictions for the price of Bitcoin during this bull market have been put forward by various analysts, with Wall Street experts taking the lead. Some forecast the flagship cryptocurrency could soar beyond $1 million, while Bernstein analysts predict a more conservative target of at least $150,000 by the end of next year.

Gautam Chhugani and Mahika Sapra of Bernstein’s analysis team pointed out that the significant influx of cash into Bitcoin ETFs has improved the potential rewards relative to the risks.

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2024-05-06 15:30