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Bitcoin Price Reaches $57,000 — What Now for BTC?

Published February 27, 2024 12:26 PM
Nikola Lazic
Published February 27, 2024 12:26 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Bitcoin climbs above $57,000, driven by institutional buying and bullish sentiment.
  • There have been significant capital inflows through spot ETFs.
  • Potential for new highs but a risk of correction looms.

On February 27, Bitcoin’s price exceeded $57,000 for the first time since November 2021. This is down to a mix of factors, including significant institutional buying and bullish market sentiment. 

The increase was especially marked during Asian trading sessions. During that time, Bitcoin rallied by more than 10% across two sessions. The growth was fueled further by MicroStrategy’s acquisition of about 3,000 BTC for $155 million.

With the price is only 20% off its all-time high of $64,000, can it revisit it, or is the Bitcoin price already getting overextended? 

What’s Driving The Bitcoin Price?

Institutional investors have shown a growing interest in Bitcoin, as indicated by on-chain data , with large cryptocurrency holders accumulating Bitcoin, leading to a 38% unrealized profit. This accumulation suggests a strong appeal among institutional investors. 

The current rally is also characterized by the liquidation of short-sellers betting against Bitcoin, contrary to typical bull market peaks where leveraged long positions are liquidated. This suggests confidence that Bitcoin can continue to rise and also indicates a potentially different market dynamic from past rallies.

BTC Price Analysis 

Bitcoin’s price started its last major uptrend on January 23 at a low of $38,860. As it blasted through the $46,000 resistance, it reached nearly $53,000 on February 15. After moving sideways, it continued its upward trajectory and, on February 27, it was worth $56,800. 

4-hour chart
More upside potential in the short term

Looking at the wave structure from January 23, we can see a five-wave pattern, indicating this rise is near completion. However, with a high-momentum upward move still developing, there is more room for the Bitcoin price to grow. 

As its all-time high approaches, the price could revisit that area, most likely ending the rise around $62,000. Completing this uptrend should mark the end of a more significant uptrend dating from November 21, 2022. 

If this is the case, we could see the start of a more extensive correction that would push the price of Bitcoin down by 30% or more. However, its target would mainly depend on where the uptrend ends. We first need to see how the current rise plays out, because we may see a new all-time high in March. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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