The price of bitcoin has risen significantly in recent months, with a new all-time high of over $63,000 achieved last month. This influx of investment has led to speculations that the underlying token may be able to reach 70,000 USD in 2018.
However, there is a lot of uncertainty as to whether this will actually happen. After all, BTC has a maximum supply of 21 million coins. Therefore, its price is highly dependent on sentiment. As a result, a large spike in demand can send the price skyrocketing. On the other hand, a decline in investing activities can result in lower prices.
To gauge how far the crypto market will go, we need to look at its technical and macro elements. By examining these elements, we should be able to determine the potential of BTC. Its most likely that the price of the underlying token will remain steady.
In the short term, the price of BTC has been consolidating around the $19,000 level. However, this consolidation is the harbinger of an upward movement, and the pair should see significant upside in the coming days.
A major indicator of a potential bullish breakout is the BTC/USD pair breaking above its 200-day moving average. This is the first time the pair has done this since late 2017. Furthermore, the BTC/USD pair has recently crossed above its signal line.
The price of BTC is currently at a point where it is a good long-term investment. At its current levels, the BTC/USD rate has plenty of room to continue its upward trajectory. If the pair breaks above the signal line, a second breakout should be expected.
Another indicator of a potential bullish breakout is a strong increase in institutional interest. Institutional investors are more than willing to buy into the underlying token as it becomes an alternative to fiat money. Also, the recent Coinbase listing has brought some positive attention to the crypto sector. Adding to the positive sentiment, a recent report by Tesla indicated that the company had purchased $1.5 billion worth of Bitcoin in a SEC filing.
The newest data in the CPI index shows that inflation is slowing down. While this is not a good thing for risk assets like BTC, it could have a positive impact on global economic growth later this year.
Overall, the crypto sector has been on a rollercoaster ride, but there are some positive trends to keep an eye on. For instance, a recent study showed that the number of addresses holding 1,000 or more Bitcoins has reached a record high. This number is set to rise further in April. Besides, there is still a lot of hype surrounding the upcoming Bitcoin 2022 conference. That conference should bring a significant boost to the market.
One interesting technical aspect of the crypto market is its stochastic oscillator. This is a volatility tool that compares closing prices to historic averages. When the RSI crosses above its signal line, it means that the price is oversold.