The price of BTC began a decent rise on Tuesday and broke through a resistance zone of $48,000. “Bulls” gained traction, leading to $50,000 retesting as shoppers tried to flip this critical level in support.
What’s to expect from Bitcoin?
Yesterday, a maximum of about $50,190 was formed before the flagship cryptocurrency adjusted lower and began to consolidate profits near the level of $48K.
Thanks to the strong upward movement, BTC recovered after one of the largest pullbacks in history, which several days ago dropped prices below the level of $43K. The recovery from a correction at the weekend comes amid bullish maneuvers by MicroStrategy, which on Monday announced it was buying Bitcoins for $15 million.
Today, the royal coin gained more bullish momentum as Goldman Sachs revealed it would restart its cryptocurrency trading platform next week. So BTC/USD is benefiting from growing institutional interest as leading firms look to buy every drop during a $43,000 retesting time.
Analyst Dave Wave warns that now is the “critical time” for the coin to prove its strength.
David Lifschitz, chief information technology officer for ExoAlpha, declined to confirm that Bitcoin’s rollback was over, but agreed that the $44,500 level acts as a reliable base of support . However, he expressed concern about where BTC price dynamics will go in coming weeks, given that March is historically a bearish trading month for leading cryptocurrencies.
The beginning of the tax season in the US in the past has put bearish pressure on the cryptocurrency market. This is because investors are often forced to liquidate some of their assets to meet their tax obligations on previously realized capital gains.
However, Lifschitz shared an upbeat view on BTC price dynamics, noting that the digital coin is still showing signs of new growth despite intense sell-offs in the market at last week.
“Despite a 20% pullback, we are still in an upward trend since October’s $10,000 breakthrough. The big question is what will miners do as they are net sellers,” he commented.
At the time of writing, the BTC was trading at $49,327.
ETH price is recovering
Meanwhile, Ether is showing a host of positive signs after starting steady growth from lows of $1,300. The second-largest crypto asset recovered above $1,450 and $1,500 after forming a strong support base of about $1,350.
There was even a jump above 1600 dollars as ETHUSD gained momentum. The pair traded as low as $1,618 before adjusting to its current price of just above $1,560. A daytime close above $1,600 could open the doors to new growth.