Bitcoin’s recent surge beyond $52,000, marking a 26-month high, has prompted analysts at Swissblock to caution about a potential imminent pullback before further price gains, according to a Friday market update. Despite Bitcoin’s impressive 10% rise in the past week, Swissblock highlights the $52,000 level as a significant resistance point on long-term charts. This level had previously capped prices in September and December 2021 and is now considered a substantial barrier to the ongoing rally.
The analysts at Swissblock noted that a pullback appears imminent and necessary due to the rapid ascent of approximately 33% over the past few weeks, suggesting an unsustainable rally. However, the report also suggests that beyond a short-term dip, the market is poised for higher prices, and any correction could present a buying opportunity, especially if Bitcoin maintains support near $47,500.
In the context of this market analysis, it’s worth noting that U.S. spot bitcoin exchange-traded funds (ETFs), particularly BlackRock’s IBIT, have experienced significant inflows, acquiring over 28,000 bitcoins this week. FalconX, an institutional crypto exchange, supported the optimistic outlook, citing “exceptional” trading volumes reminiscent of the early 2024 uptrend and highlighting that liquidity conditions surrounding the January rally remain robust.
Despite acknowledging the potential for a short-term correction, FalconX analysts emphasized that price increases accompanied by lower volumes historically signal false breakouts in the crypto market. Furthermore, they highlighted the overall strength of liquidity conditions.
In a separate update, 10x Research analyst Markus Thielen suggested a bullish scenario, indicating that bitcoin could target a $57,500 price, citing strong liquidity and increasing demand for bitcoin futures. Thielen also noted the historical performance of Bitcoin in previous pre-halving periods, suggesting favourable odds for further upward movement.
As the crypto market navigates these dynamics, analysts and industry observers remain cautiously optimistic, with an eye on key support levels and potential buying opportunities amid the broader market trends.
