Because of its consistent returns and ability to threaten the dominance of fiat currencies, Bitcoin is the most popular choice among seasoned crypto investors. After a steady decline from reasonable highs, Bitcoin has resurfaced as a strong cryptocurrency, with a lot of sentiment still pushing prices to new highs.
Bitcoin’s market capitalization has recently surpassed $1 trillion. Buyers’ belief and consistent participation at every dip have helped it reach these heights, not just sentiment.
Analysis of the Bitcoin Price
With much more decisive price action, Bitcoin has broken out of its immediate resistance zone and is heading towards the $60,000 mark. Despite a drop in daily transaction volumes, extreme bullish sentiment can be observed.
Bitcoin’s price movement can be viewed as a supply and demand concept. Every time BTC falls from a reasonable high value, it provides a good entry point for both new and seasoned investors. The drop from nearly $53,000 to $40,000 dealt a significant blow to the bullish sentiment. Because BTC has repeatedly validated the buying at a dip theory, those who purchased this cryptocurrency near the $40,000 mark benefited.
Bitcoin has broken through its immediate resistance levels of $50,000 and $55,000, and is now en route to the ultra-volatile level of $60,000. Because of the previous consolidation around the same amount, there was a minor consolidation of around $47,000. According to our Bitcoin price prediction 2021, any selling pressure from these levels can push BTC to a maximum of $50000, which should become a new psychological dip level and help push the BTC price to new highs.
The RSI is trading at incredible highs in overbought zones, backed by strong buying. However, because this increase in buying sentiment is not accompanied by an increase in volume, it is possible that either sellers have taken a break or the market is being driven by very small factors.
The 200 DMA level is still active, close to $44,000. On daily charts, we can see the formation of higher lows on each successive candlestick. Breaking through the previous swing high of $52900 has resulted in a strong buying sentiment.