Bitcoin started the new year with a bang, with its price rising to nearly $46,000 today. The rally, which began late Monday night, allowed BTC to quickly rise above $45,000, reaching $45,913.30, a level not seen since April 2022.
Chart analysts predict the next turning point on the path to a new all-time high is between $48,000 and $50,000. “Bitcoin is breaking out of a breakout direction, a three-week consolidation pattern that usually signals higher momentum,” said Julius de Kempenaer, Senior Technical Analyst at Stockcharts. He added that Bitcoin should not remain at its new level for too long.
Wolfe Research's Rob Ginsberg called the re-acceleration following the recent consolidation “a very encouraging move.” The analyst expects an overbought signal and consolidation to develop between $48,000 and $50,000. De Kempenaer argued that Bitcoin must maintain $45,000 for the next day or two for the breakout to be confirmed and the price to establish Bitcoin's new support level.
But some Wall Street analysts have expressed concerns. They worry that the market reaction if an ETF is approved may not live up to the expectations that have fueled the cryptocurrency market for the past six months. They even suggest that the market could drop to $32,000. Despite these concerns, investors overall remain optimistic about BTC's long-term outlook. However, according to de Kempenaer, Bitcoin must first reach $48,000.
*This is not investment advice.