Bitcoin Price Prediction: $55,000 in sight despite overbought state as BTC adversary turns coat

Bitcoin (BTC) price has its eyes peeled on the $55,000 range after clearing the $50K milestone, with investors demonstrating confidence in the continuation of the intermediate trend. Meanwhile, a renowned BTC adversary has shocked markets with a bold move to acknowledge BTC as a truly inclusive financial system. 

Also Read: Bitcoin price posts a new range high as Gensler details economic difference between BTC and the US Dollar

Daily digest market mover 1: Senator Elizabeth Warren signs certificate to Honor Bitcoin creator Satoshi Nakamoto

Citing gratitude from the American populace, Massachusetts Senator Elizabeth Warren signed a certificate in honor of BTC creator Satoshi Nakamoto with a ceremonial flag flying.

The Senator honors BTC’s anonymous creator for the Bitcoin network’s 15th anniversary since launch, hailing Nakamoto for creating a “truly inclusive financial system.”

A commemorative flag was flown over the United States Capitol as part of the Capitol Flag Program of 1937.

The move is shocking, considering her history as a BTC adversary, with several instances where she called out the asset for enabling crime, terrorists and climate change perpetrators.

The certificate cites Bitcoin’s innate ability to provide “new economic freedoms to populations previously ignored by both private and public institutions.”

Daily digest market mover 2: BTC call options between $60,000 and $80,000 rise

Derivative exchanges have reported a spike in call options to buy Bitcoin between the price range of $60,000 and $80,000, their strike price range, according to QCP Capital's Options Vol-cast report released on Thursday.

Based on the report, BTC call option buying has soared, with close to $10 million spent on premiums for $60K and $80K strikes this week alone, expiring from April to December.

For the layperson, traders buy a call option on an asset when they think its price is going to increase beyond the set price that they have chosen on or before the date of expiry.

If Bitcoin price hits anywhere above the strike prices in the range of $60K to $80K, respective traders would execute their contract before expiry (April to December) and book profits on their speculation.

However, if Bitcoin price fails to trade above their respective strike prices, traders would allow their options to expire worthless. In such a case, they would only lose the premium that they had paid to enter the trade.

Cryptocurrency prices FAQs

How do new token launches or listings affect cryptocurrency prices?

Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.

How do hacks affect cryptocurrency prices?

A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.

How do macroeconomic releases and events affect cryptocurrency prices?

Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.

How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?

Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.

Technical analysis: Bitcoin price tests critical barrier

Bitcoin price is testing a crucial roadblock, the upper boundary of the ascending parallel channel at $53,000. The Relative Strength Index (RSI), a momentum quantifier, shows BTC is massively overbought with a reading of 81.

Nevertheless, its inclination to the north suggests that BTC is not yet ripe for selling. This coupled with the bullish outlook of the Moving Average Convergence Divergence (MACD) and the Awesome Oscillator (AO), suggests more upside potential.

Increased buying pressure could see Bitcoin price overcome this roadblock, potentially extending the gains 4% to the $55,000 level.

In a highly bullish case, Bitcoin price could make it to $60,000, nearly 15% above current levels.

BTC/USDT 1-day chart

On the flip side, if traders cash in on the overbought crypto, Bitcoin price could drop, potentially losing support due to the midline of the channel. The king of crypto could fall into the supply zone turned bullish breaker between $44,300 and $46,760. A slip and close below its midline at $45,554 would clear the drains for an extended fall.