Bitcoin (BTC) has dropped 4% in the last 24 hours, although technical indicators suggest that support around $40,000-$43,000 could help to stabilize the week-long price drop.
Meanwhile, alternative cryptocurrencies (altcoins) such as ether (ETH) fell 5%, RUNE fell 14%, and DOGE fell 11%.Despite the recent cryptocurrency downturn, the Luna Foundation Guard continues to accumulate bitcoin.
For quite some time, the price of bitcoin has been stabilizing above $44,500. Even the 1 April downtick failed to breach this level of support, bolstering the optimistic picture.
Regardless, BTC has been devoid of volatility for the past week or two and has not risen higher. However, two on-chain indicators show that the large crypto is poised for a violent surge to the upside and that it will likely hit a key psychological threshold by the end of the week.
Possibilities Of Bitcoin price Hitting $50k
Since the closing price of the 28 March candlestick, Bitcoin has been locked below a descending trend line. Any attempt to break through this barrier has been unsuccessful. However, starting March 28, drawing trend lines linking the candlestick bodies of the swing highs and swing lows produces a symmetrical triangle.
By measuring the distance between the first swing high and low and adding it to the breakout point, this technical formation predicts a 7% upswing to $50,000. If Bitcoin price breaks out to the upside at around $46,685, it will suggest a positive breakout and lead to a rise to $50,000.
Also Read : This is Why It Is the Right Time to Accumulate Bitcoin For Long-Term!
Interested investors should keep a close eye on the breakout and position themselves properly. In a strongly optimistic scenario, when BTC rises beyond the psychological mark of $50,000, this rally has a significant possibility of reaching $53,000. BTC’s upward trend has been halted at this level.
The recent drop in open interest exhibited on BitMEX supports the bullishness of the Bitcoin price from a technical standpoint. The Bitcoin price has soared dramatically the last three times the open interest tagged $365,000.
As a result, the current retest is a buy signal, particularly if history holds true. This on-chain measure indicates that BTC will rally swiftly, with the $50,000 barrier as the first target.
Furthermore, the 365-day Market Value to Realized Value (MVRV) mode is above zero, indicating that investors are not losing money and that a sell-off is unlikely. This metric is intended to determine the average profit/loss of investors who bought BTC in the previous year.
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Source: https://coinpedia.org/bitcoin/can-bitcoinbtc-price-surge-above-50k-by-mid-april-heres-what-traders-can-expect/