After long months of waiting, the bulls are finally exerting strong bullish pressure. Today we see Bitcoin as it breaks the 40k without much difficulty, which makes us look for where the next move is most likely to be.
At the time of this writing, BTC is trading at $ 41,473.59, accumulating a gain of 6.42% in the last 24 hours and 22.75% in the last 7 days.
Fundamentals have now turned more bullish than in several months. It seems clear that institutional capital has returned to the rescue.
In a screenshot shared by analyst David Battaglia, we see how the investment fund GoldenTree, which manages more than $ 45,000 million, would have recently bought Bitcoin as a way to diversify some of the strategies that the firm carries out.
In addition, a quick review from Crypto VizArd analyst indicates that there is enough capital currently to break the psychological barrier of 42k. To support this view, the analyst performs an analysis of the SSR indicator, which each time it falls to the lower band, the price begins to recover.
Adoption uptrend resumes
This whole scenario of higher capital inflows goes hand in hand with growing adoption, which is reflected in the indicator of the number of new entities entering the market.
Recently this indicator kept falling while the price did too. However now we see how the uptrend returns. Now there are more than 910,000 new entities entering the Bitcoin network every week.
The hash rate, and consequently security, is also recovering, after the bottom reached when in China strong restrictions were imposed against miners.
It seems like nothing can go wrong, right? Let’s review the price charts to see what they tell us.
Bitcoin breaks 40k, now the ground is clear for higher gains
I repeated it a thousand times, it was not the time to sit and wait for a greater fall. The sellers were already exhausted, and now with the great development of the price, with less reason should one think about sales.
The momentum is totally bullish. In the weekly chart we see how while Bitcoin breaks 40k, the ground is clear to 58k. Even hoping for new all-time highs isn’t far-fetched.
Of course, we cannot stop looking sideways, and think that the downside risk has completely disappeared.
Only it is clear that the dominant force is the bulls, and we already saw how trying to sell can be quite risky.
The weekly candle is still in development, and we could easily see that this intention turns into a false break, but so far this is not the most likely.
A correction may be about to begin
On the daily time frame we see that the price has been climbing non-stop for the past few days, without creating even a slight correction along the way.
Yesterday the price tried to pull back a bit, but the bulls do not want to give up the bears. Finally Bitcoin breaks the 40k without major problem, and the short-term retracement was postponed again.
The further the momentum spreads, the more likely the correction is close. However, I repeat, it is never a very good idea to sit and wait for sales before a momentum as strong as the one we are seeing.
Either way, it is important to have a scenario on the table where the price corrects briefly before continuing to rise.
The next target seen on the daily chart is at 50k.
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