The whole cryptocurrency market cap has surged to $1.61 trillion, up 3.69% in the last day, indicating that the digital currency ecosystem has rebounded from the severe decline of the previous week. As anticipated, the market leader is Bitcoin (BTC), which surged 3.97% to $41,688.27, its first significant break after breaking above the $41,000 barrier level.
A negative takeover resulted in an unusually long stretch of price decline for Bitcoin, which has prevented it from testing the $43,000 level since January 12. The United States Securities and Exchange Commission (SEC) authorised the spot Bitcoin exchange-traded fund (ETF) products at the same time as the sell-offs.
Investors withdrew money from the Grayscale Bitcoin Trust (GBTC) and transferred it to other issuers due to the trust’s excessively inflated fees, which brought an unanticipated twist to the product’s introduction. The flow of money was seen as a significant liquidation event that shook the financial system and made investors sell their Bitcoin holdings.
As of this writing, the money leaving GBTC has been leaving at a comparatively slower rate, which has allowed Bitcoin to hold onto the $41,000 support level.
How high can Bitcoin rise?
At its current price of $41,688.27, Bitcoin has room to increase due to a number of variables that are both fundamental and technical in nature. Technically speaking, the BTC/USDT daily chart is displaying a relative strength index of 47.71, indicating that there is a bullish flip potential and that the currency is not close to being purchased.
Bollinger Bands are a good addition to the RSI as the forecast for Bitcoin right now indicates a reversal of the upward trend. This encouragement for additional expansion may become stronger if spot Bitcoin ETFs fully stabilise and there is a discernible decrease in the outflow of money.
Longer term, the excitement over the impending Bitcoin halving event will probably influence opinions, which will aid BTC in making its significant breakthrough. Based on forecasts, Max Keiser believes that the coin’s short-term objective should be $50,000.
