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Bitcoin Retests $41K, CAKE Rallies 100%, This Is What May Happen to BTC Price in the Near Term

The first and largest cryptocurrency, Bitcoin (BTC) retested $41,000 after consolidating in a sideways move for a while. BTC extended its bullish leg higher, rising from lows of $32,333 at the start of February to a recent high of $41,000.

It is believed that renewed interest on the part of institutional investors for instance Ray Dalio’s Bridgewater Associates, the Miller Opportunity Trust could have fueled BTC’s upward move. BTC price rally also coincided with the timing of MicroStrategy pitching Bitcoin to over 1,400 companies in a BTC themed conference.

Altcoins also soared to multi-year highs while a few tokens in this category notched new record highs. BINANCE Coin (BNB) reached a new ATH at $72 alongside Ethereum registering a new record high of $1,763. Notable daily performers among the top 100 were Cardano (ADA) which rose to highs of $0.6689, Dogecoin (+13.70%), IOTA (+12.77%), IOST (12.40%).

On a 7 day basis, notable performers are Pancakeswap (CAKE) which rallied by 101.76%, Helium (+70.49%), NEXO (+71.78%). PancakeSwap is a decentralized exchange for swapping BEP20 tokens on Binance Smart Chain. PancakeSwap uses an automated market maker (AMM) model. Users deposit funds into the pool to receive liquidity provider tokens called FLIP tokens in return. PancakeSwap also allows users to farm additional tokens – CAKE and SYRUP.

On the contrary, notable DeFi performers in the previous week such as AAVE, UniSwap posted daily losses while BTC price gathered momentum. This seems to indicate an ongoing profit recycling from decentralized finance and other Altcoins to Bitcoin.

BTC/USD Daily Chart

Bitcoin presently trades at $40,174.

This Is What May Happen to BTC Price in the Near Term

Analysts’ opinion on where Bitcoin trends next in the near term may be mixed, but generally remains bullish.

Guy Hirsch of eToro trading stated that due to a lot of open interest at $52,000 and $56,000 as indicated from the options market data, Bitcoin may find itself trading in this range in the coming months.

Hirsch noted that near-term sentiment may be generally neutral however the long-term sentiment for Bitcoin remains bullish, opining the profits from Altcoins would likely cycle back into Bitcoin in the long run.

OKEx investment analyst, Robbie Liu believes Bitcoin will likely reclaim $42,000 as the long/short ratio ranged near 1.20 which is quite bullish. Chad Steinglass, head of trading at CrossTower believes BTC will trend higher once it surpasses $40k.

Scott Melker, a cryptocurrency trader, noted Bitcoin is depicting a favorable technical market structure that could lead BTC to hit $63,000 in the coming sessions.

Denis Vinokourov of Bequant crypto trading noted that BTC consolidating below $38,000 for some time indicated “efficient price discovery,” he further added that once the $40,000 level breaks, BTC’s next move is anyone’s guess.

On the flip side, Joel Kruger, a cryptocurrency strategist believes that Bitcoin’s rally to the $41,000 level may present a more “meaningful” resistance area, pointing to a consolidation scenario rather than an uptrend. According to him, BTC weekly and monthly technical charts are still in severely overbought territory. Stating:

“We don’t believe the market should be expecting a meaningful bullish continuation beyond $40,000 just yet.”

Image Credit: Shutterstock 

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