- Bitcoin has gained more than 1,200% in value after the pandemic-triggered crash in March 2020.
- The network has witnessed consistent growth in the number of active addresses over the past year.
- Declines toward $50,000 will come into the picture if Bitcoin slices through $54,000.
Bitcoin has rallied over 1,200% since the pandemic-triggered Black Thursday day crash in March 2020. The flagship cryptocurrency traded a yearly low at $4,130 following a massive drop from $8,000. The period has yielded tremendously, with Bitcoin hitting a record high above $58,000. Meanwhile, the bellwether cryptocurrency is looking forward to setting another all-time high above $60,000 amid calls for an upswing beyond $100,000 at the end of 2021.
Bitcoin grows in tandem with network utility
The bull run has brought a lot of attention to Bitcoin, with traditional investment companies and key global figures entering the digital industry. MicroStrategy currently has more than $5 billion of its assets invested in Bitcoin, while Tesla added $1.5 billion to its balance sheet.
The persistent rally appears to have been supported by the increasing network utility. On-chain data by Santiment shows a huge uptick in the number of daily active addresses. This long-term growth is a clear signal for an up-trending market.
%20[12.06.29,%2013%20Mar,%202021]-637512260200724980.png)
Bitcoin active addresses
Bitcoin’s uptrend steadies toward $60,000
Bitcoin has sustained an uptrend within the confines of an ascending parallel channel. The middle boundary of the channel has, over the last few days, functioned as a critical support level. Meanwhile, Bitcoin is doddering at $57,400 amid the persistent push for gains above $58,000.
Note that a sustained price action above $58,000 will bring Bitcoin out of the woods and set it on a path to new all-time highs. The gap formed by the 50 Simple Moving Average above all the other moving averages (200 SMA and 100 SMA) shows that BTC is in the bull’s hands.
BTC/USD 4-hour chart
Looking at the other side of the fence
Bitcoin will abandon the breakout to new all-time highs if the resistance at $58,000 remains intact. Overhead pressure will begin to rise, perhaps enough to slide the price under the channel’s middle boundary. Support at $54,000 is crucial to the uptrend; therefore, if lost, massive declines will be triggered toward $50,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin price could retrace to $42,000 if US Nonfarm Payroll comes in at 180,000
Bitcoin price just like other assets, is highly impacted by the macro-financial developments. This includes the Nonfarm Payrolls (NFP) report released by the BLS of the United States. This time around, the NFP data is expected to cause a dip in the value of BTC.
Ripple is now only 3% away from becoming a bigger entity than Binance Coin
Ripple has overcome a lot of obstacles on its way to becoming the world’s fifth-largest cryptocurrency, as witnessed by the recent rise in XRP price. The native token of the world’s biggest crypto exchange, Binance Coin, on the other hand, has been moving in the opposite direction.
Ethereum leads altcoins north as Bitcoin halts amid bull trap fears
Ethereum (ETH) price remains northbound, unrelenting despite the king of cryptocurrency, Bitcoin, showing weakness. Behavior analytics tool Santiment observes that Ether and altcoins are on a tear even as BTC momentum fades.
BTC headstrong as Spot ETF talks reach technical stage
Bitcoin remains steadfast on the higher timeframe, amid news that spot BTC exchange-traded funds (ETF) discussions are now at the technical stage of approval. Specifically, talks with Spot BTC ETF issuers have advanced to key technical details, with Reuters indicating that it could signal a shift toward a potential approval.
Bitcoin Weekly Forecast: BTC uptrend capped by supply barrier at $43,860 as FOMO fails to suffice
Bitcoin (BTC) price uptrend has sustained since mid-September on the weekly timeframe but has since slowed down following the lack of tailwinds to drive the market. All along, narratives, themes and speculation were the driving factors, inspiring a wave of fear of missing out (FOMO) in the market. As it turns out, FOMO is not enough anymore.