The chart says it all at the moment for Bitcoin. For something that you’d think might not have too much technical correlation, this has been quite a surprisingly technical-induced jump higher for the cryptocurrency. Or at least, one can definitely argue for it in such a way if you look at the daily snapshot.
Bitcoin (BTC/USD) daily chart
After the post-ETF fallout, Bitcoin has recovered strongly as it surges now to its highest levels since November 2021. The drop back in January was very much defended by the 100-day moving average (red line) amid a dip below the $40,000 level. That is one point in favour of the technical players.
And after a break above $50,000, the pair consolidated somewhat over the last two weeks. All that before a strong breakout from the range high near $53,000 and that is setting off another leg higher in Bitcoin. That makes it two points in favour of the technical players now.
So, what’s next for Bitcoin?
The F word is all about “the halving” when it comes to the cryptocurrency. That is the supposed fuel that is driving prices higher but is it another case of buy the rumour, sell the fact? In this instance, I would say it could be a much bigger speculative move to buy into compared to the ETF hype.
And so, if we are due a drop after, it could be a rather steep and painful one. But for now, there is every chance that this latest rally could mutate into a monster over the next few weeks. “The halving” is only expected some time in April and that means we could yet see Bitcoin hit its 2021 highs before all this is said and done with.