Bitcoin’s recent surge to a new all-time high, surpassing $71,000, has caught the attention of the crypto community and investors worldwide. Renowned crypto analyst Crypto Rover predicts a groundbreaking achievement for Bitcoin, foreseeing a climb to $100,000 within the next 21 days. The current market performance, with Bitcoin trading at $71,619 and a 43.79% increase in the past month, supports this optimistic outlook.
The significance of Bitcoin’s ascent is underscored by its newfound position as the eighth-largest asset by market cap, surpassing silver. With a market cap of $1.4 trillion, Bitcoin positions itself among the world’s leading assets, only trailing behind gold. This achievement follows an 83.39% surge in 24-hour trading volume, reflecting growing interest from both retail and institutional investors.
Moreover, the UK’s Financial Conduct Authority’s (FCA) recent approval for crypto-backed exchange-traded notes (ETNs) adds another layer of positive sentiment. While restricted to professional investors, this move aligns with a global trend of regulatory support for crypto-linked asset products. The London Stock Exchange’s plan to admit Bitcoin and Ether ETNs further propels the industry’s credibility.
Technical Analysis
Bitcoin’s price is trading higher at 71,646.85 after yet another record all-time high above the 71,000 mark. Price action trades comfortably above the upward-sloping 20-SMA (green line), 50-SMA (blue line) and 100-SMA (orange line).
Therefore, short-term trading opportunities could exist towards the 23.60% Fibonacci extension level ($76,798.38) should the bulls sustain a break above the recently achieved all-time high of $71,859.97. A break above the initial resistance could confirm the bullish momentum, likely bringing the 38.20% ($79,853.49) and 50.00% ($82,322.69) Fibonacci extension levels into play.
However, with an upward-sloping RSI (71.13) entering the overbought territory, a retracement could find significant support at the 23.60% Fibonacci retracement level ($66,923.28). A sustained break below the level could confirm the bearish momentum and bring the 50.00% ($61,400.88) and 61.80% Fibonacci retracement level ($55,326.27) into play in the short term.
Summary
Bitcoin is on a tear, fuelled by institutional inflows, market maturity, and broader risk-on sentiment. The technical outlook is bullish, with potential for further upside towards $76,800. However, profit-taking and overbought conditions could lead to a short-term correction, with initial support at $66,923.28.
Sources: TradingView, MoneyControl, Bitcoin.com, U.Today, Dow Jones Newswire, Reuters.
Piece written by Mfanafuthi Mhlongo, Trive Financial Market Analyst
Disclaimer: Trive South Africa (Pty) Ltd (hereinafter referred to as “Trive SA”), with registration number 2005/011130/07, is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act, 37 of 2002. Trive SA is authorised and regulated by the South African Financial Sector Conduct Authority (FSCA) and holds FSP number 27231. Trive Financial Services Ltd (hereinafter referred to as “Trive MU”) holds an Investment Dealer (Full-Service Dealer, excluding Underwriting) Licence with licence number GB21026295 pursuant to section 29 of the Securities Act 2005, Rule 4 of the Securities Rules 2007, and the Financial Services Rules 2008. Trive MU is authorized and regulated by the Mauritius Financial Services Commission (FSC) and holds Global Business Licence number GB21026295 under Section 72(6) of the Financial Services Act. Trive SA and Trive MU are collectively known and referred to as “Trive Africa”.
Market and economic conditions are subject to sudden change which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. Trive Africa and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered. Please consider the risks involved before you trade or invest. All trades on the Trive Africa platform are subject to the legal terms and conditions to which you agree to be bound. Brand Logos are owned by the respective companies and not by Trive Africa. The use of a company’s brand logo does not represent an endorsement of Trive Africa by the company, nor an endorsement of the company by Trive Africa, nor does it necessarily imply any contractual relationship. Images are for illustrative purposes only and past performance is not necessarily an indication of future performance. No services are offered to stateless persons, persons under the age of 18 years, persons and/or residents of sanctioned countries or any other jurisdiction where the distribution of leveraged instruments is prohibited, and citizens of any state or country where it may be against the law of that country to trade with a South African and/or Mauritius based company and/or where the services are not made available by Trive Africa to hold an account with us. In any case, above all, it is your responsibility to avoid contravening any legislation in the country from where you are at the time.
CFDs and other margin products are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. See our full Risk Disclosure and Terms of Business for further details. Some or all of the services and products are not offered to citizens or residents of certain jurisdictions where international sanctions or local regulatory requirements restrict or prohibit them.
