The current price rally for Bitcoin could see the leading cryptocurrency shake off the losses hovering over its investors for the past two weeks to produce a positive price performance.
Bitcoin is on its way to making a massive recovery in the market following days of panic and adverse price action, which has impacted the most significant crypto coin in the world.
From the preceding, analysts evaluated the price trend for Bitcoin and set a new bullish target of $47,000 for the coming days.
What is Needed for Price Recovery?
One of the critical factors, as observed by analysts, for the recent Bitcoin price pullback is its direct correlation with tech stocks and also the S & P 500. Another interesting angle is that observers believe that Bitcoin is in a good position to recover from its previous price slump as investors with large portfolios continue to purchase the asset.
At the moment, the whales have begun accumulating BTC during the recent dip. As investors continue to grow their portfolio by adding a massive cache of Bitcoin, there will be a reduction in the number of assets supplied to the exchange, which will help stabilize the value of Bitcoin.
An increased demand for the BTC coupled with a vast exchange outflow is reported to be primarily responsible for the latest price rally.
Bitcoin Enjoyed Relative Stability
Throughout the Easter break, the value of Bitcoin has managed to remain stable and sits above the support level set at $47,000. The new development makes analysts believe that the risk of a sudden price reversal for Bitcoin is currently at its lowest.
The prospect of a long-term bullish trend is highly anticipated for Bitcoin because the token has had a near-perfect performance the previous week.
Furthermore, analysts at FXStreet point out some likely barriers that would impose themselves on the path of Bitcoin’s attaining the $50,000 price level. In continuation of their assessment, analysts identified a crossover for the bullish outlook, which is found between the 50-days and 100-days moving averages (MA). The MWs are the trigger for the next Bitcoin price rally.
Meanwhile, the upside for the price rally is already capped, and should the price attempt to move above it, that is $43,516, it is bound to fail.
From all indications, Bitcoin has been on a bullish streak for a couple of days as it seeks to recover from the previous price fluctuations that have become a significant part of its price performance.
As analysts point out, the price will likely move upward whenever an opportunity arises. The price can change to indicate either a positive or negative performance.
Should the price rally continue to be steady, the entire crypto market is bound to benefit immensely from the recovery, considering how monumental the effects of Bitcoin’s performance have been on the industry as a whole.
On the flip side, barring any significant market change, Bitcoin is set to continue its positive run.