Over the last weekend, Bitcoin (BTC) has been showing healthy signs of a trend reversal, and well, as of press time, it has moved past its 50-day moving average (DMA).
As of press time, Bitcoin is trading 3.05% up at $42,799 with a market cap of $811 billion. This could be the end of the long-term correction and consolidation for the world’s largest cryptocurrency. Crypto market analyst Lark Davis writes:
Bitcoin now bumping into resistance at the 50 day MA and the big zone of resistance at $42,500. If we close above these levels then we could see some serious fireworks!
#bitcoin has been in a downtrend since November, we have now broken out of that trend.
Next stop? M O O N pic.twitter.com/jOjdV6LnIQ
— Lark Davis (@TheCryptoLark) February 7, 2022
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The analyst further presents an interesting chart showing a breakout in the Bitcoin RSI levels. Davis writes: “Major break out underway for Bitcoin !!!! RSI breaking out of downtrend in a serious way! Last time this happened we had about 130% price gain. History about to repeat?”
As CoinGape reported, Bloomberg analyst Mike McGlone is quite bullish about Bitcoin for this year of 2022 and believes that $100K shall be the next stop going ahead for Bitcoin. Furthermore, the Bitcoin scarcity is getting real for sure! The bitcoin illiquid supply is growing twice as fast as the new supply. Thus, it won’t be a surprise if the BTC price picks up very fast to the north.
Bitcoin Lightning Network Capacity All-Time High
Adding fuel to the fire is the very positive development of increasing Lightning Network capacity. Bitcoin’s Lightning Network capacity has grown drastically over the last 12 months as it now locks a total of 3,400 BTC equivalent to a staggering $141 million. This is three times the capacity a year ago.
Furthermore, big market players have now started implementing the Lightning Network. Block Inc’s Cash App has now integrated the Lightning Network thereby bringing zero-fees Bitcoin payments to the application. This was possible via Block’s own open-source Lightning Development Kit.
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