Bitcoin Price Consolidates Above $47k, Analysts Call for More Upside in Near Term

Bitcoin price is now retesting the 2022 opening price, which was followed by the dip that has taken three months to recover.

Bitcoin price has consolidated between $47k and $48k in the past two days. This is after breaking out of a multi-week consolidation on March 27, 2022. Analysts now think Bitcoin may be poised to have more upside movement in the near term. Furthermore, Bitcoin price made a strong support level at around $32k.

Notably, the entire crypto market cap has risen to above $2.2 trillion today. Bitcoin and Ethereum are in the lead with a market cap of $900 billion and $407 billion respectively.

What do Analysts Think about Bitcoin Now?

The price rally has been attributed to money inflow from institutional investors. According to a survey conducted by Goldman Sachs, more than half of surveyed institutional investors own crypto assets. Well, it is no coincidence as crypto assets have performed better than the traditional stock market. Additionally, crypto has outperformed the precious metal industry in the past decade.

“We should expect further institutional adoption in the future and increased financialization of bitcoin through financial instruments commonly used in traditional financial markets,” Arcane Research noted.

Bitcoin’s upside momentum is also supported by the technical price action. Notably, most indicators including the moving average are pointing up.

“We move to an intermediate-term bullish bias noting intermediate-term momentum has shifted positively and the 50-day moving average is pointing up,” Katie Stockton told Barron’s. “Bitcoin has room for near-term upside followthrough toward next resistance near $51,000 … above that, secondary resistance near $55,200 would be targeted.”

Bitcoin and the Crypto Market

The crypto market has attracted notable investment and thus a fair share of criticism. Bitcoin price is now retesting the 2022 opening price, which was followed by the dip that has taken three months to recover.

A breakout on the current level should see the asset spike to the next resistance level at around $52k. Afterward, it is around $57k that the asset may encounter notable resistance, and perhaps retrieve to gather momentum.

Moreover, it is at this level that the asset first encountered major resistance during the previous bull market. Nevertheless, the asset could bore through the past hurdles at ease to set a new ATH.

Bitcoin’s success is however not without limitations. The asset is said to consume a significant amount of power to secure its network. Consequently, Environmentalists have launched a campaign dubbed Change the Code Note the Climate.

With the Change the Code Note the Climate campaign, environmentalists have proposed moving Bitcoin from PoW to PoS. However, it may not be an easy endeavor since Bitcoin is a decentralized and globalized asset. Moreover, the POW is heavily invested and convincing miners may take forever.

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Steve Muchoki

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