After witnessing a period of declines following the launch of multiple spot Bitcoin exchange-traded funds (ETF) in the US, BTC has been recovering recently, closing above $48,300 over the weekend.
With this price surge, the flagship cryptocurrency has managed to erase all losses suffered after the ETF launch and saw its highest weekly close since the end of the 2021 bull run.
Interestingly, analysts are even expecting a more bullish outlook for the king coin with potential price surge to $50,000 in the coming weeks.
BTC Eyes $50K, But Faces Resistance at Key Level
Citing its “In/Out of the Money Around Price” chart, on-chain analyst IntoTheBlock predicted that a $50,000 BTC price is imminent, but this surge faces resistance at a critical level.
Bitcoin has set its sights on $50k!
To get there, there is one important resistance level left. Over 800k addresses acquired nearly 270k $BTC at an average price of $48,491. These addresses are currently in the red and might provide sell pressure as they break even on their… pic.twitter.com/nEw4tP8wUc— IntoTheBlock (@intotheblock) February 12, 2024
As shown in the chart, over 800,000 addresses currently hold 270,000 BTC that were acquired at an average price of $48,491. These addresses are now underwater on their investment, and they may be inclined to sell their BTC once it reaches their break-even point, according to IntoTheBlock.
If many of these addresses sell their BTC simultaneously, it could create significant selling pressure and push the price down. However, if bulls can overcome this resistance level, the path to $50,000 could be clear, the analyst said on X (Twitter).
Potential Catalysts
Meanwhile, several factors could see BTC break through the $48,491 level. One is the growing institutional interest in the asset — which could increase buying power. Another factor to consider is the upcoming Bitcoin halving event, which is expected to occur in April 2024. This event could boost demand for BTC and increase its price.
Meanwhile, only time will tell if BTC can overcome this potential selling pressure and reach the $50,000 price target in the coming weeks.
At the time of filing this report, BTC was hovering around $48,000. With its current price, the flagship cryptocurrency has increased 11% over the past week and 12% in the last 30 days.
