Bitcoin price to jump above $50,000 for the first time this year

Bitcoin price, Ethereum and other cryptocurrencies are still feasting on positive news out of Ukraine that has set a massive tailwind in their sails, and led to solid gains across the board. The big driver was comments from both Ukraine and Russia that a deal is on the table and it is time for Putin and Zelinskyy to meet. Markets popped higher but are fading a little bit in the ASIA PAC this morning as investors take profit and, in the process, offer a window of opportunity to get in long again as markets will now start to price out any tail risks from this geopolitical event as the binary outcome is now falling in favour of risk-on.

Bitcoin price takes a pause today to cool down the RSI before popping above $50,000

Bitcoin (BTC) price is under a bit of pressure in the ASIA PAC because of two elements weighing on the rejoice sentiment from Tuesday. The first element is news on the biggest heist in crypto history, where several millions were stolen from cryptocurrency accounts, which is putting a dent in the credibility of cryptocurrencies. The second negative element putting some pressure is that investors have been frontrunning past days the signs of a breakthrough in geopolitics, making it a textbook example of buy-the-rumor-sell-the-fact with investors taking profit as the good news is out now. 

BTC price, however, is not showing signs of the uptrend ending anytime soon. With a considerable tail risk out of the equation, the relief tailwinds and global risk-on are the perfect environments for cryptocurrencies to thrive further. Expect to see, with the fade today, bulls add to their positions and soon see BTC prices being squeezed above $50,000, targeting $50,019.29 in the first phase and $53,350.61 by the end of this week. That would mean that another 13% of gains are in the cards with still three trading days.

BTC/USD  daily chart

With the Relative Strenght Index (RSI) being overbought, a fade might not be enough to cool down BTC price action. A broader correction would be able to push the RSI back to 50, offering a better entry-level for fresh investors to join the rally. That would mean a drop back of $45,261.84 or even $44,088.73, making those levels perfect entries for a rebound. As the 200-day Simple Moving Average (SMA) has already rejected twice a test to the upside, this could be the scenario unfolding in the coming days.