Bitcoin’s Potential for Borderless Philanthropy

Bitcoin broke through $50,000 earlier today, and it has been fluctuating close to that key, psychological level since.

Analysts Weigh In

Now that the world’s most valuable cryptocurrency by market capitalization has risen above the $50,000 price point (for the first time since 2021), several analysts weighed in on what key variables traders should watch next.

Brett Sifling’s Insights

“Bitcoin remains in favor with investors, after the ETF approval perked new public interest in the industry,” stated Brett Sifling, an investment advisor for Gerber Kawasaki Wealth & Investment Management.

“The next major catalyst is the halving that should happen in the next few months,” he wrote via emailed comments, referring to the upcoming event that will cut the Bitcoin network’s rate of new supply by 50%.

“Since Bitcoin is hard to value based on traditional metrics, investors tend to see these major catalysts like the halving as positive developments, especially since it lowers the supply of Bitcoin that comes onto the market due to Bitcoin miners,” Sifling stated.

Scott Melker’s Perspective

Scott Melker, a crypto investor who is the host of The Wolf Of All Streets Podcast, also weighed in on the major developments that traders should watch.

“Bitcoin is trading in a range, absorbing the slowing selling pressure from GBTC and awaiting the halving in April,” he stated via email.

Support and Resistance Levels

After providing the aforementioned commentary, which focused on fundamental developments, Sifling switched gears, identifying some key levels of support and resistance that market observers should monitor, starting with the $50,000 level that bitcoin managed to surpass today.

Support Levels

“I would also expect some resistance around the $52,000-$53,000 level, which were prior highs back in 2021 and 2022. If we break that level, it could potentially give momentum for a continued breakout,” Sifling emphasized.

“As for support, it’s important that if Bitcoin can’t hold above $50,000, that it doesn’t fall below the ~$45,000 mark. If it does, falling below $40,000 could signal a break in this year’s uptrend and suggest further downside,” he noted.

Grant Tungate’s Technical Analysis

Grant Tungate, senior analyst of systematic trading for Blockforce Capital, also offered some technical analysis for this article.

“BTC rallied to new highs on the year today, surpassing the ETF launch day high of ~$49k,” he wrote via emailed comments, adding that “$49k is now logical support near term.”

“Near resistance is ~$52k, and from there the 2021 all-time highs ~$69k will be the most key level,” he stated, singling out the cryptocurrency’s all-time high, which was reached in late 2021.

“If there is a major failure here the Jan 24th low of $38.5k then 200d moving average at ~$35k are support levels to watch,” Tungate added, clarifying what could happen should bitcoin encounter notable downside.

Key Support and Resistance Levels

The chart below displays the key levels of support and resistance he singled out:

| Support Levels | Resistance Levels |
| — | — |
| $49,000 | $52,000 |
| ~$45,000 | $52,000-$53,000 |
| ~$40,000 | ~$69,000 |
| Jan 24th low of $38.5k | – |
| 200d moving average at ~$35k | – |

Conclusion

Bitcoin’s recent breakthrough of the $50,000 level has sparked interest among investors and analysts. The upcoming halving event and positive market catalysts are seen as factors that could influence Bitcoin’s future performance. Traders are advised to monitor key support and resistance levels, such as $50,000, $52,000-$53,000, and the all-time high of $69,000. Maintaining support above $50,000 is crucial, while breaking resistance levels could lead to further momentum. However, falling below support levels, particularly $45,000 and $40,000, could indicate a potential downtrend. These insights from analysts provide valuable guidance for traders navigating the ever-changing cryptocurrency market.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.

Bitcoin’s potential for borderless philanthropy