According to one analyst, technical analysis indicates that Bitcoin is likely to continue its upward trend and reach as high as $48,000 by the end of the year.
Bitcoin made “a very significant move as it clears a heavy overhead resistance level” on Tuesday, rising above $32,000 and briefly touching $35,000. Julius de Kempenaer, senior technical analyst at StockCharts.com, described the move.
According to de Kempenaer’s email comments, the next significant resistance level for bitcoin is between $47,000 and $48,000. He anticipates that the cryptocurrency will test that range by year’s end.
Bitcoin is expected to continue rising, according to analysts at cryptocurrency derivatives exchange Deribit. The last 18 months have seen Bitcoin consolidating between the 20,000 and 30,000 level; historically, those breakouts frequently predicted unbelievable upward momentum, the analysts wrote in a note on Tuesday. This reminds him of the old trader acronym, “The Bigger the Base, the Higher the Space.”
Analysts at Deribit say that there is also more activity in the cryptocurrency market, with the 24-hour trading volume up 97% from a week ago to $82.5 billion.
According to emails received, there is currently close to an all-time high of about $21 billion in total open interest on Deribit. In general, open interests reflect the degree of market participation and are defined as the total number of outstanding derivative contracts for an asset.
On Tuesday, the market capitalization of bitcoin exceeded that of the entire cryptocurrency market by approximately 54%, marking the highest point since April 2021, according to the bitcoin dominance ratio. As ETC Group’s chief strategy officer Bradley Duke puts it, “it feels like enthusiasm for Bitcoin is starting to return.” Only time will tell if this rally has legs, though.
