Investor sentiment in the cryptocurrency ecosystem has improved significantly in the last week, despite the events in the world. As of now, Bitcoin (BTC) has returned to over $43,500 with many altcoins posting double digit gains.
Index of fear and greed in cryptography. Source: alternative
The ongoing conflict in Ukraine and recent actions by governments to restrict access to banking services may have helped highlight the value of owning cryptocurrencies, which provide some protection against uncontrolled events and what some may consider abuse by the authorities.
Data from Cointelegraph Markets Pro and TradingView shows that on March 2, the price of BTC fluctuated between $43,350 and $45,400 while the world waits for some kind of resolution to the ongoing disputes.
1-day BTC/USDT chart. Source: Trading View
Here’s what many analysts have to say about BTC’s recent price action and where it could go in the coming weeks.
The beginning of the accumulation of bitcoins
According to crypto analyst and Twitter user Rekt Capital, bitcoin’s sideways price movement was largely affected by the fact that the top crypto “gone into a volume gap,” which published the following chart, highlighting the drop in demand in the current price range.
Weekly BTC/USD chart. Source: Twitter
Rekt Capital s.a.o.,
“Volume gaps tend to be completely filled. High volume break resistance is expected in the ~$48,000 range, which is the middle range in the overall range.”
Ki Yong-joo, CEO of circuit analysis company CryptoQuant, stated that the price is likely to rise. According to Key, the “accumulation phase of BTC” has begun.
Age group for bitcoin UTXO. Source: Twitter
According to Key, “newcomers who joined last year are developing long-term owners,” where the market value of bitcoins older than six months is 52% of the total market value of BTC, compared to 13% of the last cyclical peak.
“It’s unlikely to reach the previous low ($28,000) as new starters wait for the next cycle.”
Price hikes could be the next big stimulus
David Lifshitz, Managing Partner and Chief Investment Officer of ExoAlpha, gave a deeper analysis of the impact of current events on the crypto market, noting the complex rise of BTC from $37,000 to $44,000 “two hours after Russian President Vladimir Putin announced a national ban on foreign exchange transfers. currencies.”
According to Lifshitz, the $44,000 fast rally stopped, coinciding with the 100-day moving average, which is also “close to the top of the $33,000-45,000 range where bitcoin has been trading for several weeks now.
Lifshitz sees resistance at $45,000 now and highlights the “next hurdle” at $51,000 that is still in the way before BTC can attempt to rise to all-time highs above $64,000.
As for what’s next for BTC in the short term, Lifshitz suggested that “BTC could drop slightly towards the middle of the $33,000-$45,000 range” and noted that “it’s hard to see BTC above $45,000 and then $51,000.” dollars without any significant value. » Catalyst. ”
This is the FOMC meeting on March 16 where the Fed will decide whether to raise interest rates or not. Technically, an interest rate hike would “strengthen” the dollar and thus “weaken” BTC in the BTC/USD pair, so it will be interesting to see how BTC reacts if the Fed raises interest rates in two weeks, but the impact on Bitcoin might not be too aggressive. . . ”
Related: Bitcoin bulls seek to solidify control over BTC price, turning $44,000 as support
Vertical accumulation “probability”
The latest look at BTC’s historical performance comes from analyst and Twitter user Altcoin Sherpa, who posted the following chart showing that current coverage has been an important area of support and resistance since May of last year.