$50,000, $52,000, $63,000... What price do analysts now expect for Bitcoin?

The barrier of $50,000 is the first of these levels to overcome, and the one that will confirm that the rally has viability, according to Naeem Aslam, analyst at AvaTrade, as it presents much greater resistance than the $45,500 - $46,000, that it has already breached. "The 'bulls' are in control of the price," Aslam commented, "but it is important to note that the rally will be stalled unless it manages to break above the next control zone," he added, and "once this resistance is broken, we are very likely to see serious upside momentum."

"If it is able to hold above the $46,000 level (which roughly marks the yearly open) for several days, I expect a move towards $52,000, which is the next key resistance," stated Marcus Sotiriou, analyst at GlobalBlock, who believes that the $46,000 level "is a major pivot for the near-term direction of the market."

This prediction is also supported by the 'onchain' analysis of Bitcoin, that evidences that long-term holders, the HODlers, were accumulating for months. This data is "finally proving to be accurate," noted Sotiriou, who also argued that once all the headwinds coming from fundamentals were discounted, "we are seeing a long-awaited relief." "The cryptocurrency fear and greed index has reached 60, which is classified as greed; the last time it reached this level, Bitcoin was around $60,000," he explained.

A level that would not be unattainable to José María Rodríguez, technical analyst at Bolsamanía, who is of the opinion that "if we believe the symmetrical triangle broken to the upside now we could expect a move towards the $62,000-$63,000 area (the width of the formation) leaving the door open, even, to a move in search of the historical highs at $69,355 (November 10th, 2021)". "And above that, it would be placed, once again, in an absolute free ascent," he stated.

However, for buying to continue to pour into digital assets, the broader rebound in other markets must be sustained, experts noted. Many investors are shedding the caution caused by the war in Ukraine and its immediate economic effects, especially the rise in oil prices. Such events tend to increase traders' nerves and when investors are nervous, they tend to abandon speculative assets and buy others considered safer.

However, now that the world has adjusted to the new reality, money is returning to more speculative assets. And this positively affects cryptocurrencies.

FUNDAMENTALS SUPPORT THE PRICE

Meanwhile, there have been several bullish developments in recent days. Late last week, the head of Russia's State Duma committee on energy, Pavel Zavalny, commented that his nation might allow "friendly" countries to pay for their oil in cryptocurrencies, pointing specifically to Bitcoin. Experts emphasized that the war in Ukraine encourages the adoption of digital currencies, as use cases of these tokens have been seen.

Good news also comes from the regulatory front. The Markets in Cryptoassets Act (MiCA) that the European Union (EU) is working on has entered a new phase of debate this week in which any allusion to a ban on proof-of-work mining has been definitively dropped.

"Despite what some may think, regulation by governments could prove key for the sector, as many reluctant investors may see it as a sign of safety and will be more tempted to venture into previously uncharted territory that many considered too volatile and uncertain," explained Walid Koudmani, head of analysis at XTB. "This could ultimately lead to a significant increase in the rate of mass adoption that, as a consequence, could further boost prices."

Finally, market observers also noted that purchases by Luna Foundation Guard (LFG) are driving the price. Specifically, last week it purchased $125 million in Bitcoins as part of a plan to accumulate a total of USDT $3 billion in Bitcoins as a reserve for the Terra token.