The new year has not stopped cryptocurrency giant Bitcoin from gaining strength, as the share price is poised to hit $48,000 (R894,753) in the coming weeks.
The share price was trading at $45,939 (R858,214) on Tuesday morning.
On Monday this week, Bitcoin was trading at a high of $46,995, the highest it has hit in the last month.
A technical analysis by Trading Rage argues that Bitcoin’s price has been consolidating above the $40,000 level for the last few weeks.
The analysis suggests that, given this continued climb, the cryptocurrency will most likely hit the $48,000 resistance zone.
Moreover, the research states that the “Relative Strength Index is also demonstrating values above 50%, pointing to the fact that the momentum is in favour of the buyers. As a result, a rally towards the $48,000 level seems probable in the coming weeks”.
Craig Erlam, Senior Market Analyst at OANDA, stated earlier this month that Bitcoin may see new record highs this year.
“It's been a decent start to the year for Bitcoin, up more than 6% over the first couple of days already to trade at a 9-month high, above $45,000,“ he said.
“The crypto community will likely feel there's a lot to look forward to this year, not to mention much less controversy than in 2023. If the first two days of the year are anything to go by, it may not be long until people are debating about record highs and beyond,” Erlam concluded.
NOT ALL GOOD NEWS FOR INVESTORS
It should be noted that Matrixport has issued a warning and predict that Bitcoin may decline by as much as 7% in the next two weeks.
The research suggests that one of its trading signals has turned bearish for the first time since August 2023.
The company’s analysts have also said that they anticipate that the US Securities and Exchange Commission (SEC) will reject all spot Bitcoin exchange-traded funds (ETFs) in January.
Matrixport stated that the market consensus is that the SEC would allow spot Bitcoin ETFs by January 10.
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