Bitcoin continues its ascent and reaches $57,000! Crypto Analysis of February 27, 2024

Bitcoin continues to reach new highs, hitting $57,000. Let’s examine together the future prospects of the BTC price.

Bitcoin (BTC) Situation

After stabilizing around $50,000 to $52,000, Bitcoin has continued its bullish trend. Indeed, the price of Bitcoin has appreciated by nearly 10%. Thus, BTC has marked a new peak at $57,250. The $53,000 resistance has therefore been breached and could now be considered a level of support. It is interesting to note that the BTC price is just below the 78.6% Fibonacci retracement level, calculated from Bitcoin’s all-time high (ATH). This can be seen as resistance. Moreover, one can observe that the BTC price has moved away from its last value zone, between $42,000 and $44,000.

Similarly, Bitcoin has thus clearly moved away from its 50-day moving averages, demonstrating increased volatility. Naturally, the bullish momentum continues, and the oscillators do not fail to demonstrate this phenomenon. All these elements testify to a bullish movement supporting the Bitcoin trend, which, paradoxically, suggests a period of consolidation or correction to come.

The current technical analysis was conducted in collaboration with Elie FT, an enthusiast investor and trader in the cryptocurrency market. He is now a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. There you will find Lives, educational content, and mutual aid around financial markets in a professional and friendly atmosphere.

Focus on Derivatives (BTCUSDT)

The open interest for BTC/USDT naturally increased along with its price. However, it is worth noting that it has not reached its highest level. Moreover, one can see that open interest experienced a decline during the recent rise of Bitcoin to $57,000. Given the information on liquidations, which were predominantly sellers, we may anticipate a capitulation of sellers on BTC/USDT contracts. The funding rate on perpetual contracts, having been revised upwards, suggests a larger price gap with the underlying asset. This could be due to strong buying pressure on BTC/USDT contracts, illustrating the optimism of short-term speculators. Although this supports the current market trend, caution is advised as it may also signal over-optimism.

The liquidation heat map for BTC/USD shows that Bitcoin has crossed two significant liquidation levels. The first around $52,000 and the second, higher one, around $53,000. Given the market’s direction, it seems that reaching these levels has sparked buying interest. However, this interest could be tested again in the future. Thus, these last areas could remain important in the eyes of investors. Currently, the nearest liquidation zones to the current price are below it, notably at the $50,000 levels. Approaching the market at this level, we could witness a massive triggering of orders, which would potentially increase the cryptocurrency’s volatility. This zone thus represents a major point of interest for investors.

Bitcoin (BTC) Price Hypotheses

If the Bitcoin price manages to hold above $54,500, we could anticipate a further rise up to its last peak, or even $58,360. The next resistance to consider, should the upward movement continue, would be $60,000. At this point, it would represent an increase of nearly +6%.

If the Bitcoin price fails to hold above $54,500, we could envision a reinforcement of the buying interest around the $53,000 zone. The next level to consider, if the downward movement continues, would be around $52,000. At this stage, it would represent a drop of about -7%.

Conclusion

Bitcoin continues its bullish momentum, reaching new highs. Its upward dynamic persists, although it may fade in the short term after such a push. Therefore, it will be crucial to closely observe the price reaction at the various key levels to confirm or refute the current hypotheses. It is also important to remain vigilant for potential “fake outs” and market “squeezes” in each scenario. Lastly, let us remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also rapidly evolve based on other more fundamental factors.