Bitcoin has gained momentum in the past ten days, with the price even soaring to its highest point in six weeks.
Bitcoin heading for new annual highs
After starting the year above USD 47,000, Bitcoin price crashed below USD 34,000 on January 24. Now, however, the positivity seems to have completely returned. BTC is already trading above USD 44,000 and is approaching the highest level of the year. The overall trend has been sharply upwards since March 13, and many analysts believe Bitcoin is on the cusp of a major breakthrough.
There are several factors that can cause a sharp rise in the price of Bitcoin. One of these is increasing mainstream adoption. While Bitcoin is still not widely accepted by businesses, it is slowly gaining traction. More and more people are aware of this. Another factor is the increase in institutional investment and a return of the risk appetite of private investors in various markets.
These two factors, combined with the current price action, are driving very positive investor sentiment. If the BTC price breaks the $45,000 mark soon, that could indicate a continuation of the upward trend. This, in turn, could pave the way towards the USD 50,000 resistance level.
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A bearish scenario
If Bitcoin fails to break through the USD 45,000 resistance level, it could indicate a possible correction. This correction will then push the BTC price back to the USD 43,000 support level. Then, if the bearish pattern remains intact, a sharp drop towards the key USD 40,000 support level could follow.