Bitcoin Poised for a Breakout as Possibility of a Demand Surge Grows
BITCOIN USD KEY POINTS:
quick update on Bitcoin. It’s been hanging around the $28000 mark for a while now after its big rally back in March during the banking crisis. The price has been bouncing between $26300 and $29300 since March 18, and it’s pretty exciting because we’re not sure which way it’ll go next! A breakout in either direction is a possibility, so we’ll just have to wait and see.
Exciting news – MicroStrategy just purchased 1045 more bitcoins at an average price of $28016 per BTC. Now, MicroStrategy owns a whopping 140k Bitcoins with a total value of around $4 billion at an average price of $29803. Michael Saylor, the founder and a big fan of Bitcoin, shared his thoughts on the purchase, but unfortunately, it didn’t cause a huge jump in the market.
VALUE OF FEES HINTS AT DEMAND SURGE
It’s hard to predict which way the breakout will go at this point, but Glassnode, an on-chain analytics firm, has found a helpful metric. They’re looking at the value of fees, and it seems like there might be some new demand coming into the market. Glassnode’s research shows that the 90-day SMA for fees is higher than the yearly average, which makes them even more confident that a demand spike could be on its way.
Good news for the crypto market – both the crypto fear and greed index and the Bitcoin fear and greed index are now showing signs of greed. we are feeling pretty optimistic about a bullish breakout, but it’s important to remember the saying “trad what you see and not what you think.” When we take a closer look at the technical picture, we can see that there are arguments for both a bearish and bullish breakout.
the US Dollar has been gaining strength lately, which could prevent a bullish breakout. But don’t worry, even though the Dollar has gone up in the past couple of days, Bitcoin’s price hasn’t followed suit. This makes me think that the bulls might gain control soon. Plus, we’re expecting some important US data releases tomorrow that could also impact things.
TECHNICAL OUTLOOK
Just wanted to give you a quick update on BTCUSD. It’s been moving within a range since March 18 and it looks like there might be some uncertainty in the air. Right now, we’re trading within a symmetrical triangle pattern and the apex is getting closer every day.
mentioned before, there are a couple of possibilities when it comes to technical analysis. Taking a closer look at the chart below, you can see a double-top pattern that suggests the chance of a bearish breakout. But keep in mind that there’s also a case for a bullish breakout too.
if the market goes up, we might see some exciting movement toward the $30000 price point. And who knows, maybe even break through to around $31200!
BTCUSD Daily Chart, April 6, 2023
