Bitcoin has surpassed the $50,000 level for the first time since 2021, causing significant excitement among cryptocurrency enthusiasts and ordinary economic observers alike.
This surge in Bitcoin prices has also triggered rallies in some other altcoins. However, the question arises: will the cryptocurrency rally continue, or is it time for price correction after the brief breach of the $50,000 mark?
Will the cryptocurrency rally continue?Although indicators have not yet provided clarity, investors continue to watch anxiously. During this waiting period, a plethora of data emerges, and experts persist in their analysis.
In light of the recent rise in Bitcoin prices, technical indicators seem to inspire optimism. Open interest (OI) in Bitcoin futures has noticeably increased, reflecting growing interest and activity in the market.
According to data provided by CoinGlass, OI has increased by 7.58%, reaching a value of $23.48 billion, or in other words, 468,200 BTC. Exchanges like CME and Binance appear to be leading this upward trend.
On the other hand, indicators closely monitored by cryptocurrency investors, such as the Fear and Greed Index and the Relative Strength Index (RSI), also provide crucial data.
During this period, the Fear and Greed Index for Bitcoin approached a level of 80, indicating greed among investors, while the overall cryptocurrency market lagged at a level of 72.
Furthermore, as the price of Bitcoin continued to rise, the RSI also increased, reaching a level of 78, fully reflecting the overbought condition. In such times, investors looking to enter the market should exercise caution with FUD (fear, uncertainty, and doubt).
Renowned crypto analyst Ali Martinez notes that Bitcoin investors are optimistic in response to recent price movements, departing from previous periods of concern. Martinez's observations align with comments from other crypto traders stating that "$50,000 is not the final price."
Moreover, il Capo Of Crypto suggests that Bitcoin may encounter resistance at the $50,000 level but predicts altcoins' growth despite potential price movements in Bitcoin.
Furthermore, crypto analysts also emphasize the possibility of further growth in Bitcoin associated with the upcoming halving event. Historical data indicates that previous Bitcoin halvings have led to significant price movements.
While Bitcoin has pleased its investors by surpassing $50,000, it has increased risk appetite and raised expectations for new all-time highs.
Bitcoin to reach $600,000 by 2026Although some analysts claimed that $50,000 was a local peak and predicted further decline, others shared their expectations of continued BTC growth.
One of those anticipating an increase was analyst Tuur Demeester, who successfully predicted the peak in 2021. He is one of the early Bitcoin advocates who stated that, in his opinion, Bitcoin would reach $600,000 by 2026.
The analyst mentioned that the Bitcoin halving expected in April, ETF approval, and rescue measures announced after the banking crisis would contribute to this growth.
Demeester expressed his expectation that Bitcoin would reach $600,000 by 2026. He conveyed optimism about Bitcoin's price growth, attributing it to the upcoming halving and ETF approval. Furthermore, he mentioned that global aid and stimulus packages, announced in response to a potential banking crisis, might also influence economic growth.
Noting that Bitcoin had surged to $50,000 in under a month, Demeester anticipated an awakening among retail investors, predicting an increase in BTC purchases.
"Remember, there is no fever like bitcoin fever," he noted.
Demeester, one of the early Bitcoin advocates, accurately predicted that the historical peak of BTC would range from $50,000 to $100,000 in 2020.