Bitcoin price is predicted to reach $50,000 because of many strong breakout indicators

By Selena On Apr 15, 2023

The current gains are part of a pre-halving rally that resembles the 2020 advance of about 320% after striking a bottom, claims Stockmoney Lizards, a pseudonymous cryptocurrency analyst. Also, Bitcoin price has reached a 38.2% Fibonacci retracement at both times.

Going ahead, the analyst stated that, based on previous price movements, Bitcoin reaching $49,000 is still a “possible target for the next months.”

Pre-Halving rally ongoing. Possible target for the next months | Source:
Stockmoney Lizards/ Twitter

It is important to remember that the block reward will halve again for Bitcoin in April or May 2024, dropping to 3.125. The events that marked the halving are regarded as positive for Bitcoin.

The recent increase in Bitcoin is partially a result of the global economy’s declining inflation, which has raised hopes that central banks may soon change their monetary stance. Consequently, Bitcoin appears to be healthy overall, but crypto trading specialist Michael van de Poppe warned investors to expect “shallow corrections in an upwards trend” in a tweet on April 14.

#Bitcoin looks strong, but will have some shallow corrections in an upwards trend.

I’ve marked $31.7-32K as important resistance point.

However, $25K was the level everyone wanted to buy. This will probably shift to $28.5K, and then nobody buys.

I’d prefer to focus on $29.7K. pic.twitter.com/m18Qo5UvDn

— Michaël van de Poppe (@CryptoMichNL) April 14, 2023

In other places, the Bitcoin rainbow chart suggests that BTC may have started a fresh surge before the halving event. After consolidation in the “Essentially a Fire Sale” sector, BTC is now, as of April 15, in the “Accumulate” zone. Interestingly, this pattern matches one from March 2020, just before the halving event. While trading under $6,000 in March 2020, Bitcoin broke out of the “Basically a Fire Sale” zone.

Bitcoin rainbow chart | Source: Blockchaincenter

This occurrence signaled a crucial turning point for the cryptocurrency, setting off a price bottom that ultimately caused a rise in value leading up to the bull run of 2021. As a result of this increasing trend, BTC eventually reached an all-time high of around $69,000.

Investors can use the tool to monitor upcoming swings in the price of Bitcoin. It evaluates the historical price performance of Bitcoin using color bands that follow a logarithmic regression, giving information about the asset’s long-term movements.

The asset responded favorably to the banking crisis and the Federal Reserve’s interest rate hike, causing consolidation, which led to the most recent Bitcoin advances. At the same time, the market began to exhibit increased bullish activity with the release of the non-farm payroll report, which revealed a fall in March. Data on inflation also showed a decrease in consumer prices in China, which assisted in raising the price of Bitcoin above $30,000.

BTC/USD 4-hour chart | Source: TradingView

At the time of publication, Bitcoin had slightly decreased by more than 1% over the previous day to trade at $30,335. Bitcoin has increased by over 9% on the weekly chart.

Yet, bullish sentiments predominate in the one-day technical analysis of Bitcoin as derived from TradingView. The gauges suggest a “buy” at 14, while “moving averages” suggest a “strong buy” at 13.

Bitcoin technical analysis | Source: TradingView

Supporters of Bitcoin think that the asset is currently in a critical stage of its acceptance journey, especially given the pressure the U.S. dollar is under because it is the world’s reserve currency. The likelihood that Bitcoin will reach $50,000 will also depend on the direction of the overall economy and outside variables like the regulatory environment.

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