Bitcoin (BTC), the largest cryptocurrency on the market, has once again encountered difficulties in consolidating and reaching the $38,000 level. In fact, it is currently experiencing a 3% pullback, raising concerns among the community. Speculations regarding a possible retracement before the bullish momentum resumes and the next uptrend begins have started to emerge.
Renowned crypto analyst Adrian Zduńczyk has recently shed light on Bitcoin’s potential next target: $50,000. Zduńczyk’s analysis takes several crucial factors into consideration, including the prevailing bullish market sentiment, the ongoing uptrend, the short-term outlook, miner sentiment, and seasonal trends.
Zduńczyk notes that the cryptocurrency industry is currently in a bull market, with Bitcoin recently reaching a new 52-week high and experiencing the third wave of the bullish cycle. Additionally, the correlation between Bitcoin and the S&P 500 has been on the rise, indicating a favorable environment for Bitcoin. Moreover, high time frame trends are also on the rise, further supporting the potential for Bitcoin’s upward trajectory.
Identifying key macro support levels, Zduńczyk highlights $29,000 and $27,000 as important levels for Bitcoin. These support levels are driven by growing demand, fueled by the anticipation of the approval of spot Bitcoin exchange-traded funds (ETFs) and the upcoming halving event expected in April 2024.
According to Zduńczyk’s analysis, the daily chart for BTC remains in an uptrend. The appearance of a “golden cross” pattern further supports this notion. Additionally, the rising Simple Moving Average (SMA) 200 is deemed as “irrefutable evidence” of a dominant bull market since January. All these indicators suggest that Bitcoin’s upward trajectory is likely to continue.
Zduńczyk identifies key support levels for Bitcoin at $35,000 to $35,800. The maintenance of price above these levels reinforces the prevailing bullish sentiment. Currently, Bitcoin is ranging between $35,500 and $38,000. Zduńczyk notes that the momentum bands are widening, indicating an increase in volatility. The rising 50-day Average True Range (ATR) trend further supports this observation. Despite the mixed sentiment among market participants, with the Fear & Greed Index standing at 69, miners are enjoying a profit increase of 23%. These factors contribute to Zduńczyk’s positive outlook.
Taking into account seasonal trends, Bitcoin demonstrated a gain of 27% in October, surpassing the average performance. Historically, November has been the best month for Bitcoin, with an average gain of 43%. In line with this, the target of approximately $50,000 seems plausible. Looking ahead, December typically adds 7% to November’s closing price.
At present, BTC is trading at $36,400, reflecting a 5% and 22% profit over the past fourteen and thirty days, respectively. The focus now shifts towards whether BTC can maintain its crucial support levels and sustain its bullish uptrend, ultimately reaching the anticipated $50,000 milestone supported by historical patterns.
Despite Bitcoin’s failure to consolidate at the $38,000 level, there are positive indicators that suggest a potential next target of $50,000. Analyzing various factors such as market sentiment, trends, support levels, and historical patterns, crypto analyst Adrian Zduńczyk brings optimism to the table. However, it is important to recognize the inherent volatility in cryptocurrency markets and closely monitor any significant developments that may affect Bitcoin’s trajectory.