Bitcoin Has to Hold above $52,000 to Avoid Further Downward Movements, says Crypto Analyst
Brian Njuguna Mar 10, 2021 10:00
Veteran crypto analyst Michael van de Poppe believes BTC has to hold above the $52k level for an upward momentum to be ignited.
Bitcoin (BTC) has renewed speculations from analysts that it could retest its all-high price (ATH) of $58,300 set last month - after it surged to the $55,600 level in the past few days.
It has, however, retraced to $54,673 at the time of writing, according to CoinMarketCap.
Veteran crypto analyst Michael van de Poppe believes BTC has to hold the $52k level for an upward momentum to be ignited. He explained:
“Beautiful rejection on the $56,000 area for Bitcoin here. If the $52,000 area holds, we can see further sideways action and renewed tests of $56,000. However, once again, $52,000 is critical to hold to avoid further downwards moves.”
The analyst believes that once the $52k level is held, a raging market will emerge, and this will prompt a price momentum that will test the $56,000 resistance before another ATH is set.
BTC’s renewed momentum has been renewed as institutional interest is going through the roof based on big-money moves. This price surge has been pivotal in making Bitcoin skyrocket by 570% in the last 12 months.
Bitcoin futures perpetual funding rates are warming up
According to Moskovski Capital CEO, Lex Moskovski, BTC futures perpetual funding rate has started gaining momentum, which is a bullish signal. He acknowledged:
“Funding has started to warm up again. Not exactly February's levels but a notable jump nonetheless. People are getting increasingly bullish.”
An increase in Bitcoin futures perpetual funding rates illustrates that people are using leverage to buy BTC instead of spot buying. As a result, showing the willingness of more users to join the Bitcoin network.
Recently, twenty-five publicly traded companies showcased their financial muscle as they hold a total of 178,855 on their balance sheet worth a whopping $9.6 billion. They include Tesla Inc, Microstrategy Inc, Voyager Digital LTD, Galaxy Digital Holdings, Meitu, and Square Inc, among others.
If the $52,000 support level holds, as alluded to by Michael van de Poppe, Bitcoin may be set for a new ATH in the near future.
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