Bitcoin (BTC) refreshed February highs on Friday as attention focused on the upcoming weekly close and long-term rally to $88,000.
Key Points:
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Bitcoin hits ten-week high as markets shed geopolitical nerves.
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The trader predicts that BTC price strength could return $88,000 in just two to four weeks.
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The level to watch out for before the next weekly candle close is $72,800.
Bitcoin’s local price peak brings hope for $88,000
Data from TradingView confirmed fresh ten-week highs of $77,027 on Bitstamp.
BTC price action has sought to capitalize on recent strength in risky assets, with geopolitical tensions and uncertainty over global oil supplies becoming increasingly priced in. The ceasefire between Israel and Lebanon appeared to further boost market confidence.
On Thursday, the S&P 500 index reached 7,050 points for the first time in history, setting the highest close ever and the second highest in the history of the week.
Commenting, cryptocurrency trader Michaël van de Poppe said that Bitcoin should gain more soon thanks to reduced macro volatility, especially in the VIX volatility index.
“As long as the VIX continues to decline and we reach a new equilibrium where oil volatility declines, gold volatility will decline significantly,” he added. he wrote in the post on X.
“What will you start to see? More inflows into the $BTC ETF as allocators will be able to allocate more to Bitcoin.”
Van de Poppe was referring to U.S. spot Bitcoin Exchange Trade Funds (ETFs), which have seen net inflows of $330 million since the beginning of the week, according to data from the British investment firm Investors from Farside.
“It would also benefit altcoins and $ETH as they follow Bitcoin’s path,” he added.
“In this case, I see a strong argument for Bitcoin’s continued growth to $85-88 thousand in the next 2-4 weeks.”
Meanwhile, trader and analyst Rekt Capital has identified $72,800 as a “key” level to recover during the upcoming weekly candle close for BTC/USD.
“If Bitcoin wants to close above the weekly resistance ($72,810, blue), then the price would need to hold the blue level as support in the event of an upcoming decline,” he stated. explained along with a chart showing key price points.
“The last time Bitcoin was rejected from the black resistance in mid-March, the price also lost the blue level as support. Therefore, a daily close below the blue level after any upcoming decline could result in the price returning to the blue-blue weekly range.”
Trader warns of BTC price drop due to volume
The bearish outlook included that of trader Roman, who maintained expectations for lower levels next.
Related: Bitcoin could grow ‘likely much bigger’ than $30,000-plus gold market – analysis
He warned that the decreasing trading volume to maximums is a telling sign of weakening dynamics.
“We are in a macroeconomic downtrend which when we see high volume continues downwards. Low volume indicates consolidation/correction to continue the overall trend,” he added. explained on X
“The next high-volume move will likely take us lower.”
As Cointelegraph reports, a price level below $50,000 remains a popular bet for Bitcoin’s next macroeconomic bottom.
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