Over the past month, Bitcoin has risen in price by 35%. Today, August 11, the price of the main cryptocurrency on the Binance crypto exchange reached $ 46,300 for the first time since May 16.
Experts from RBC-Crypto explained what phase the crypto market is in now and gave a forecast for the price of bitcoin.
The correction is complete. The latest changes in bitcoin quotes and the strengthening to $ 46 thousand indicate that the correction phase is over, says Yuri Mazur, head of the data analysis department at CEX.IO Broker. In his opinion, market participants managed to return the bullish momentum to the main cryptocurrency, but the question remains how long crypto investors will be able to maintain a positive attitude.
“We can talk about a full-fledged return to growth after bitcoin consolidates above $ 50,000 ,” Mazur said.
The impetus to reach new highs will be formed in anticipation of the update of the Bitcoin network this fall, the analyst predicted. According to him, if the update takes place without problems and on time, the rate of the main cryptocurrency will try to take the $ 70 thousand mark.
In November, the Taproot Bitcoin network is expected to be updated, which will expand the functionality of the blockchain through the introduction of smart contract technology.
Exiting lateral movement
After the bitcoin rate exceeded $ 42 thousand, the movement of quotations in a narrow range ended, explained Mikhail Karkhalev, financial analyst at Currency.com crypto exchange. According to him, the rise to $ 42 thousand made it clear to sellers that there would be no new «crypto winter» now, and the rise to $ 48 thousand would mark the beginning of a new bull market.
“To begin the recovery and continue the current growth cycle, it is important for bitcoin to overcome first $ 48 thousand, and then go above $ 53-54 thousand, where the road opens to renew the historical maximum,” the analyst added.
Given the situation in the global economy and the cryptocurrency market, bitcoin has a good chance of renewing its all-time high this year, says Karkhalev. In April, the digital coin rate reached a record high of $ 64.3 thousand.After that, the value of bitcoin began to decline and on June 22 dropped to $ 28.8 thousand.
The largest banks continue to introduce cryptocurrencies into their infrastructure:
- On August 5, investment bank JPMorgan gave wealthy clients access to their own passively managed bitcoin fund. The fund was created by JPMorgan in partnership with NYDIG (New York Digital Investment Group).
- On July 29, State Street, one of the oldest banks in the United States, announced its readiness to offer crypto services to wealthy clients of its funds.
In August, Bitcoin’s hashrate continues to recover from its largest drop in history. In June, the amount of computing power used to mine cryptocurrency fell by more than 50% after the introduction of a mining ban in China. On August 10, Bitcoin hashrate is 115 Eh / s (exahashes).
MACD points to Bitcoin’s uptrend towards $ 50,000
According to the Moving Average Convergence Divergence (MACD) indicator, the prevailing trend favors the bulls. This came after a sustained bullish signal from July 22nd. As the 12-day EMA crossed the 26-day EMA, the chances of a break have increased.
As the MACD moves above its centerline, Bitcoin’s uptrend is bound to intensify and generate profits above $ 55,000.
Currently on the daily chart, BTC is trading above all relevant moving averages, including the 50 SMA, 100 SMA, and 200 SMA. While support remains at the $ 45,000 level highlighted by the 200-day SMA, buyers will focus on highs above $ 50,000. Trading above this level could push Bitcoin to $ 55,000.
The Relative Strength Index (RSI) is at 70. A breakout of the overbought zone could allow the bulls to push the price higher.