BTC price appears to be consolidating below $44,000 while analysts are highlighting $48,000 as the next short-term bullish target.
Investor sentiment in the cryptocurrency ecosystem has clearly shifted in a positive direction over the past week, despite events around the world. Bitcoin (BTC) is currently back above $43,500 and many altcoins are also posting double-digit gains.
Crypto Index of Fear and Greed. Source: Alternate
The ongoing conflict in Ukraine and recent moves by governments to restrict access to banking services may have helped shed light on the value of owning cryptocurrencies, which offer some protection from uncontrolled events and what some might perceive as abuses of power.
Data from Cointelegraph Markets Pro and TradingView shows that BTC’s price fluctuated between $43,350 and $45,400 on March 2 as the world awaits some form of resolution to the current conflicts.
1-day BTC/USDT chart. Source: Trade View
Here’s what some analysts have to say about BTC’s recent price action and how it might evolve in the coming weeks.
Bitcoin accumulation has started
According to crypto analyst and Twitter user Rekt Capital, Bitcoin’s sideways movement was largely influenced by the fact that the major cryptocurrency “entered a volume gap,” which the chart below published, highlighting lower demand in the current price range.
Weekly BTC/USD chart. Source: Twitter
Rekt Capital said:
“Voids in volume are usually completely filled. Resistance to large gaps in volume lies ahead in the ~$48,000 area, which is the mid-macro area.”
Evidence that the price is likely to increase was provided by Ki Yong Joo, CEO of analytics firm CryptoQuant. According to Key, the “accumulation phase of BTC” has begun.
Bitcoin UTXO ages. Source: Twitter
According to Key, “newcomers who joined last year are becoming long-term holders” as Bitcoin’s market cap older than six months now accounts for 52% of BTC’s total market cap, up from 13% in the recent past. cyclic peak.
“Reaching the previous low ($28,000) is unlikely as rookies will wait for other rookies in the next cycle.”
Rate hikes could be the next big catalyst
A deeper analysis of the impact of current events on the cryptocurrency market was offered by ExoAlpha’s Managing Partner and Chief Investment Officer, David Lifshitz, who described BTC’s sharp surge from $37,000 to $44,000 “a few hours after Russian President Vladimir Putin’s announcement a national ban on foreign exchange transfers.”
According to Lifshitz, the rapid move higher “ended at $44,000, which is the 100-day moving average,” which is also “close to the top of the $33,000-45,000 range that Bitcoin has been trading in for several weeks.
Lifshitz sees the $45,000 resistance as sustainable for now, and highlighted the “next hurdle” at $51,000 that still stands in the way before BTC can even attempt a rally to its all-time high above $64,000.
Regarding the near-term next steps for BTC, Lifshitz suggested that “BTC could easily fall towards the midpoint of its $33,000-$45,000 range,” noting that “it’s hard to imagine BTC going above $45,000 and then climbs above $51,000. “Catalyst”.
“There is an FOMC meeting on March 16 where the Fed will decide whether or not to hike rates. Technically, the rate hike is “strengthening” USD and therefore “weakening” BTC in the BTC/USD pair, so it will be interesting to see how BTC reacts if the Fed hikes rates in 2 weeks, but the impact on BTC might be negligible. Spicy”.
Related: Bitcoin bulls attempt to tighten control of BTC price by flipping $44K into support
Vertical Accumulation is an “Opportunity”
The latest insight into BTC’s historical performance came from analyst and Twitter user altcoin Sherpa, who posted the chart below, showing the current range as a significant support and resistance zone since last May.
1-day BTC/USD chart. Source: Twitter
Altcoin Sherpa said:
“We’re watching $40,000 to see if we can get a pullback. If it looks like September then we will see vertical accumulation and Bitcoin will not fall at all (except on low timeframes) for a while. I don’t think I’ll get it in the short term.”
The total market cap of the Kry