After a long hiatus, Bitcoin experienced a sharp rise and revived the entire crypto market. Technical analysis, historical patterns and the macro environment all point to further price growth.
Bitcoin (BTC) returned to growth after a ten-day decline as it breached the $70,000 mark again on Monday. Other cryptocurrencies followed suit and also posted significant gains.
Experts are now estimating what this move could mean for the further development of the price of the world's largest cryptocurrency by market capitalization.
Revival of the crypto market
Bitcoin entered Monday afternoon hovering around the $67,000 mark . But then it rose up to 7% in a few hours and even surpassed $71,000 in the evening. It corrected slightly on Tuesday and is hovering around $70,000.
Interestingly, this price action did not trigger a wave of short liquidations, indicating a small number of shorting traders.
Bitcoin short positions that were wiped out by Monday's rally totaled only $53 million , which is less than the recent daily average. In total, about $129 million was liquidated in bearish leveraged positions across the entire market.
Bitcoin was naturally followed by altcoins, with dogwifhat (WIF), Internet Computer (ICP) and Aptos (APT) growing the most.
A sharp rise in prices suggests that the market may be exiting its correction phase, which saw Bitcoin fall from record highs above $73,000 to as low as $61,000 last week.
Predictions for Bitcoin
Markus Thielen, founder of analytics company 10x Research, highlighted the importance of breaking the 2021 peak of Bitcoin of $69,000.
Historically, when Bitcoin retests and surpasses previous market cycle highs, it often engages in significant rallies.
This pattern, along with the observation that Bitcoin tends to perform strongly during US election years (with historical increases of 100-200%) creates the basis for bullish forecasts for the cryptocurrency later in the year.
10x Research has identified potential for Bitcoin to move higher after breaking through a consolidation pattern.
A symmetrical triangle formation, a classic technical analysis pattern, suggests a $ 15,000 to $20,000 rise in price from the $63,000 level, which could push Bitcoin's value up to $83,000.
This dynamic is further supported by the dovish stance of several central banks, including signals from the Federal Reserve System, which indicate a willingness to tolerate higher inflation and lower interest rates. 3 times this year.
So it seems the stage is set and Bitcoin can shine again this year. Thielen stated that the upper estimate of Bitcoin's price is at $102,000.
