Bitcoin (BTC) Will Break Above $46,000 But Not So Fast: Analyst
- BTC would only trade above $46,000 after the halving, Rekt Capital said.
- The price climbed back above $40,000 amid new capital inflow.
- A move below $38,000 is possible in the short term if selling pressure continues.
Analyst Rekt Capital has made a new Bitcoin (BTC) price prediction, saying the coin might not rise above $46,000 until after the halving scheduled for April. According to the trader, once Bitcoin breaks its four-year cycle resistance, the path could be clear to the said price.
This month, BTC hit $49,000 hours after the U.S. SEC approved the Bitcoin spot ETFs. But the event which many expected to drive Bitcoin’s price higher than $50,000, turned out to be a “sell the news” event.
Recently, the selling pressure, especially those from Grayscale, has sent BTC plunging. At press time, BTC’s price was $40,086, representing a 7.33% 30-day decline.
New Money Comes In
Bitcoin’s downward trend as shown by the 4-hour chart mirrored the intense sell-offs. While this might be concerning, it might not be the end of the drawdown.
However, bulls have been trying to neutralize the bearish state. This was because of the signals shown by the RSI. As of this writing, the RIS had risen to 44.78. This was what helped BTC climb back above $40,000.
If the accumulation continues, then BTC might be able to breach $41,023. The Money Flow Index (MFI) also supported this potential as it moved up to 41.14. The increase here was proof that new capital was entering the Bitcoin market.
Also, if it increases further, the coin price could trend high. But if the flow of money stalls, BTC might keep consolidating around $39,000 and $40,000. On the other hand, if selling pressure outweighs the buys, a move below $38,000 could be possible.
Meanwhile, other analysts commented on Bitcoin’s price action. One of them was Ali Martinez. According to Martinez, it could be time to buy the dip considering how BTC had performed in previous bull cycles.
BTC to Keep Correcting?
In his post, the analyst noted that corrections during the bull market were at an average of 21%. He also mentioned that BTC had done the same this time. So, participants should be accumulating at a discount.
Per the long-term horizon, Coin Edition decided to look at the Exponential Moving Average (EMA) on the daily chart.
As of this writing, the 50-day EMA (blue) was above Bitcoin’s price, suggesting a significant recovery might not occur soon. But the 200-day EMA (yellow) was below it.
Furthermore, the upward crossover of the 50 EMA over the 200 EMA means Bitcoin’s price might trade higher in the mid to long term.
So, Rekt Capital’s view that the price could rise above $46,000 after that halving seemed plausible.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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