Bitcoin continues to sustain the upward momentum it gained when it bounced off the $38,500 support. In the last 24 hours, Bitcoin has gained by 3.90%. As of 10:50 AM, Bitcoin was trading at $46, 237. Buying volumes are up by 16% to stand at $28.05 billion.
This comes as Bitcoin continues to trade in the general direction of the S&P 500, which is currently strongly bullish and making new highs. This shows that despite the high-interest rates environment, investors are willing to start taking risks again, and with Bitcoin halving around the corner, Bitcoin is a solid bet.
Georgia Debating Tax Incentives For Bitcoin Miners
Bitcoin has also got a boost now that US states are becoming more receptive to Bitcoin mining. This factor further adds to the positive perception of Bitcoin by the average investor. One such US State is Georgia. The US State of Georgia is currently debating a crypto bill that seeks to grow the State’s Bitcoin mining economy further.
Through the suggested Blockchain Basics Act, Georgia wants to use tax incentives to draw in more Bitcoin miners. Among the suggestions of the bill is a sales tax exemption for anyone who brings in Bitcoin mining equipment to the State. The proposed law would also legally protect Bitcoin miners operating in industrial zones.
Whales Accumulating Bitcoin
Confidence around Bitcoin has also been bolstered by the fact that whales are starting to accumulate Bitcoin. Blockchain analysis indicates that a whale that recently made a huge splash on Chainlink (LINK) had also made significant investments in Bitcoin. Whale activity usually shows the confidence or lack in a cryptocurrency by big money investors. In this case, big investors seem confident that Bitcoin, Ethereum, and Chainlink are headed for good times.
The rising investor confidence in Bitcoin and other major assets like the S&P 500 is a key driver to Bitcoin’s renewed upside momentum.
Bitcoin Gaining Bullish Momentum But Needs To Break $48,900 For Confirmation
Bitcoin’s current price indicates rising bullish momentum as buying volumes rise.
Since bouncing off the $38,500 support on 23rd January, Bitcoin has been closing higher on most days. The upside momentum started accelerating on 8th February, indicating a potential bullish breakout ahead of the halving.
However, for a clear Bitcoin upside to be confirmed, Bitcoin needs to close above the high of $48,985 that it made on January 11th. This would indicate that bulls are entirely in control of the market.
If bulls can push Bitcoin through $$48,985, then $50k and a potential retest of its most recent highs of $69k could be in the cards.
However, if bulls lose momentum and cannot push Bitcoin through the $48,985 resistance, two scenarios could play out.
The first would be potential range-bound trading between now and the Bitcoin halving. After the halving, Bitcoin could see renewed buying momentum that could push it through its most recent all-time highs.
On the other hand, if bulls fail at $48,985 and bears take control of the market, the key target would be the January lows of $38,527. If bears manage to breach the $38,527 support, Bitcoin could see one more leg down before the halving uplifts it again to potentially new all-time highs.
Bitcoin Price Prediction: The Case For Bulls
The current Bitcoin price action mirrors that of the S&P 500. It signifies that investor confidence in the financial markets is back despite the high-interest rates environment.
This means that any asset with positive factors around it will likely see continued growth going forward. For instance, AI stocks are recording significant increases in the stock markets.
In crypto, a historically significant event is coming up soon for Bitcoin. Throughout Bitcoin’s history, the halving has always been followed by a price rally that saw BTC make new highs.
Now that confidence in the markets is back, and the halving is about two months away, Bitcoin will likely see more interest from retail and institutional investors. The case for strong bullish momentum is bolstered by the fact that institutional money now has a platform to buy Bitcoin through ETFs.
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