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Bitcoin is likely to rally further and reach as high as $48,000 by the end of the year, based on technical analysis, one analyst says.
As bitcoin
BTCUSD,
jumped above $32,000 and briefly touched $35,000 on Tuesday, it is “a very significant move as it clears a heavy overhead resistance level,” according to Julius de Kempenaer, senior technical analyst at StockCharts.com.
The next major resistance level of bitcoin stands at $47,000 to $48,000, de Kempenaer said in emailed comments. He expects the crypto to test that range by the end of this year, de Kempenaer said.
Analysts at crypto derivatives exchange Deribit also expect bitcoin to continue to rise. “The old trader acronym, ‘The Bigger the Base, the Higher the Space’, comes to mind as Bitcoin consolidated between the 20,000 to 30,000 level during the last 18 months, and historically, those breakouts often predicted unbelievable upward momentum,” the analysts wrote in a Tuesday note.
The crypto market is also seeing increased activity, with the 24-hour trading volume up 97% from a week ago to $82.5 billion, according to analysts at Deribit.
Meanwhile, total open interest on Deribit stands at around $21 billion, nearing an all-time high, according to emailed comments. Open interests refer to the total number of outstanding derivative contracts for an asset and usually indicate the level of market participation.
The bitcoin dominance ratio, which measures bitcoin’s market capitalization to that of the total crypto market, jumped to about 54% on Tuesday, the highest level since April 2021. “Only hindsight will be able to tell us if this rally actually has legs, but it feels like enthusiasm for Bitcoin is starting to return,” according to Bradley Duke, chief strategy officer at ETC Group.
