Ali Martinez, a trader and cryptocurrency analyst who goes by @ali_charts on cryptocurrency Twitter, has discussed what he believes is preventing Bitcoin, the leading cryptocurrency in the world, from rising beyond $50,000.
Stiff resistance stands in Bitcoin’s way
According to Martinez, there is strong resistance at $38,500 on the Bitcoin UTXO Realised Price Distribution Index. The aforementioned index displays the amount of Bitcoin purchased at each price. Martinez predicts that if the leading cryptocurrency can break over this significant resistance level, it will likely go up towards the $47,360 price point. This represents an almost $10,000 difference between the current and expected prices of BTC.
https://x.com/ali_charts/status/1728890341363941875?s=20
Bitcoin, or “digital gold,” has lost about 3% of its value since Friday, Nov. 24. It had reached a high of $38,426 locally. Following the surge to that price apex, there was a massive $2 million short sale of Bitcoin positions.
Signs hinting at forthcoming crypto rally emerge
Not only were BTC shorts liquidated, but the whole cryptocurrency market saw the liquidation of positions totaling $71.15 million. This can portend an impending cryptocurrency upswing.
In addition, whales were quite active between August 19 and October 16 as they moved a significant quantity of USDT (3.54% of the total supply) and 0.72% of the USDC circulating supply to cryptocurrency exchanges, according to a recent tweet from the on-chain data aggregator Santiment.
According to Santiment, one of the factors that spurred the surge in the cryptocurrency market from the end of October to the middle of November was the remarkable exchanges of stablecoins for trading platforms.
According to their study, the return of USDT and USDC (stablecoins that are mostly used to purchase Bitcoin and Ethereum) into trading platforms will be a significant indicator, “crucial to seeing market caps continuing to increase for a big final 5 weeks of 2023.”
Major Bitcoin price catalyst approaches
The fourth Bitcoin halvening event is anticipated to occur in the second part of spring 2024, thus for now, the cryptocurrency community is looking forward to next year. Since mining is the only means to create or mint new Bitcoins for circulation, this will entail a halfing of the market’s supply of Bitcoin and a reduction in miners’ incentives from the current 6.25 BTC to 3.125 BTC.
Half of the experts think that the price of Bitcoin has been significantly influenced by this. According to one particular study, following the first halving in 2012, Bitcoin increased 94 times; following the second halving in 2016, it increased 30 times; and following the halving in 2020, Bitcoin increased 6 times, hitting a new all-time high (the second consecutive one) of $69,000 in 2021.
As a result, the analysis indicates that Bitcoin may be able to approach the $220,000 mark, which prominent Bitcoiner Max Keiser frequently forecasts would be reached in the coming years, if it increases by at least six times following the 2024 halving.
