Bitcoin price prediction: Jump to $50,000 Seems Inevitable
The Bitcoin (BTC/USD) price rebounded in the overnight session after days of moving sideways. The coin jumped to above $47,000, which was substantially higher than this week’s low of about $44,000.
BTC price rebounds
Bitcoin has made some strong recovery recently. After falling to below $30,000 recently, the price made a strong recovery above $48,000 on Sunday.
This price action was driven by the overall view among traders and investors that prices had bottomed slightly below $30,000. The price struggled to move below that level in May, June, and July.
At the same time, on-chain data shows that large Bitcoin holders were not selling. In fact, some of them were adding some of their positions. A quick look at the volume of Bitcoin traded in the past few days shows that it has been in a steady upward trend.
The Bitcoin price also bounced back after the Securities and Exchange Commission (SEC) seemed open to the idea of an exchange-traded fund (ETF).
The main caveat is that the SEC will likely approve ETFs that have a futures component. Still, there are already some of these funds in Canada. ProShares already runs a Bitcoin futures mutual fund. Also, there are concerns about whether investors will actually move to invest in these funds.
The BTC price has also rallied because of the developments in other currencies. For example, Ethereum has already implemented the London hard fork while Cardano is in the process of doing the Alonzo hard fork.
Notably, the Bitcoin price has rebounded even in a period when the Fed is considering tightening. The FOMC minutes published on Wednesday showed that more officials were supportive of winding down the asset purchase program. In theory, cryptocurrencies and other safe havens should underperform in a tightening period.
Bitcoin price prediction
The daily chart shows that the BTC price found a strong support slightly below the $30,000 level. The coin has then made a major bounce and rose above the 50-day and 25-day exponential moving averages (EMA). This is a major bullish move.
At the same time, the price remains comfortably above the key support at $41,285. Therefore, the price will likely maintain the bullish trend as bulls target the next key resistance at $50,000. On the flip side, a drop below $41,285 will invalidate this view.