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Bitcoin: Is a move above $40k likely?

3min Read

According to an analyst, Bitcoin has the potential to hit $44,000. The analyst arrived at this conclusion by looking at the Fibonacci levels. What other factors seem to support this bullish thesis?

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  • A strong support between the 0.786 and 0.886 Fib levels may drive another BTC increase.
  • Long-term holders continue to accumulate, thus backing the projection.

“Will Bitcoin [BTC] reach $50,000 by the end of the year?” This is one question that many holders of the king coin may have asked themselves considering how the price action has fared in the last few weeks. 


Read Bitcoin’s [BTC] Price Prediction 2023-2024


Coupled with Standard Chartered’s earlier prediction in the year, it is not out of place to reminisce about the potential.

But is BTC showing any signs of inching closer to the aforementioned price point? Market analyst CRYPTOHELL, who publishes his analysis on CryptoQuant, weighed in on the discussion from a technical viewpoint.

The Fib has come into play

According to CRYPTOHELL, Bitcoin has the potential to hit between $44,000 to $47,300. The analyst arrived at this conclusion by looking at the Fibonacci levels.

This indicator provides benchmarks for price movement. It can also be vital in showing where a coin price is likely to reach or if it will reverse.

For the analyst, Bitcoin could hit the 0.0786-0.886 Fibonacci levels. Typically, if BTC hits the 0.786 or 0.886 Fib level, it means the coin has had solid support at 0.618. Therefore, a breakout is likely, and considering the current value, BTC may rise above $40,000.

Bitcoin Fibonacci levels

Source: CryptoQuant

Like many other analysts, CRYPTOHELL also mentioned that macroeconomic factors like the spot ETF possible approval also depict a bullish thesis for Bitcoin. He wrote:

 “If we analyze the Bitcoin Exchange Flow, traders in both the spot and derivative markets are not aggressive in making decisions to sell their supplies in large quantities.”

A lively cohort and a ready-to-rise value

The potential for a Bitcoin jump was also reinforced by the liveliness. The Bitcoin liveliness increases as long-term holders sell off their holdings. If this happens, then BTC’s value would most likely decrease.

However, at press time, the metric had decreased significantly to 0.59. This drop implies that there has been more accumulation. Coupled with the current ETF narrative, accumulation could drive another BTC price increase.

Bitcoin liveliness

Source: Glassnode

A look at the Exponential Moving Average (EMA) showed that the coin’s consolidation is not destined to last for long. At the time of writing, the 20 EMA (blue) had crossed over the 50 EMA (yellow). 

This is usually a bullish signal. So, it is very likely for BTC to reclaim $35,000 first. If the EMAs remain the same, then the coin may approach $40,000. Also, there was a golden cross as the 50 EMA (yellow) was also above the 200 EMA (cyan).


How much are 1,10,100 BTCs worth today?


Technically, a golden cross, as shown above, is alleged to establish a new uptrend. So, even after Bitcoin crosses $40,000, there is a chance that the uptick will continue. Furthermore, the Money Flow Index (MFI) agreed with the EMA indication as it increased.

Bitcoin price action

Source: TradingView

At 78.55, the MFI showed that there was a lot of buying pressure for BTC. Hence, this leaves open the chance for a price increase.

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Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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