Bitcoin (BTC) could head towards $56,000

9 avril 2022

Throughout March, bitcoin experienced a dramatic rally before performing a retracement in the first week of April. Despite this slack, analyst Michaël van de Poppe identified a key level of resistance for a breakthrough last Friday. He believes that bitcoin can easily reach the $56,000 mark by breaking through this level.

Cross $46,881 or dive towards $36,000

Considering bitcoin's recent bullish momentum over the past 30 days, Michael van de Poppe highlighted a crucial resistance level around $46,881. “Bitcoin is approaching a crucial level to test if it is to continue higher, towards potentially $56,000,” he claimed. On April 7, however, the analyst pointed out that the asset could not hold the $44,700 level and started falling. He predicted that bitcoin's inability to break above the $46,881 level could be followed by a sharp decline.

“Bitcoin is currently achieving a major breakout. If we hold it, all is well, it looks set for another step towards $57,000. If we don't, then I see a test around $36,000,” he said. Meanwhile, cryptocurrency trader Rekt Capital said the asset is retesting two key bull market exponential moving averages (EMAs). “BTC is currently re-testing two bull market pivot EMAs as support. These are the 50-week EMA and the 21-week EMA,” he said.

A possible thumbs up from the Bitcoin 2022 conference

After a market-wide slump earlier this year, bitcoin is currently experiencing a rare period of stability. This could be bolstered if significant good news comes out of the world's largest bitcoin conference. The event currently taking place in Miami is the same one where the President of El Salvador declared last year that his country would adopt bitcoin as legal tender.

One of the major announcements coming out of the Bitcoin 2022 conference is the one made by Jack Mallers about using the Ligthning network to facilitate bitcoin payments. This is actually an initiative of Strike in partnership with Shopify, NCR and Blackhawk Network. It should allow all websites using Shopify's online card transactions to accept bitcoin payments. However, the impact of this announcement on the price of bitcoin is not yet noticeable.

Until this is effective, bitcoin is trading around $42,270 at the time of writing this article and is down almost 10% over the week. For the moment, the asset seems far from the objective set by Michaël van de Poppe despite the optimism of the analyst.

Source : Finbold