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Bitcoin‘s gradual increase over the weekend indicates that the demand from bulls is continuing. Data shared by Bloomberg analyst James Seyffart on January 26 shows that the assets under management of BlackRock’s iShares Bitcoin Trust (IBIT) have crossed the $2 billion threshold. Strong purchases from lower levels have halted Bitcoin’s decline, but a new surge in momentum does not seem likely to start quickly.
What’s Happening in the Crypto Market?
While investors focus on the newly launched Bitcoin exchange-traded funds and await the halving event in the Bitcoin ecosystem in April, Bitcoin can consolidate its gains. Bitcoin trading in one region is considered a positive sign as it indicates that investors are not in a hurry to take profits, expecting the uptrend to continue.
This situation could also be good news for certain altcoin projects that may attract investor interest and sustain their gains. On January 27, Bitcoin indicated a reduction in selling pressure by rising above its 20-day exponential moving average of $41,959.
Bitcoin Chart Analysis
Both moving averages continue to flatten, and the Relative Strength Index (RSI) is near the midpoint, indicating a balance between supply and demand. The BTC/USDT pair could oscillate between the levels of $44,700 and $37,980 for a while.
A breakout and close above the $44,700 level would be the first sign of buyers returning to the driver’s seat, potentially raising the price to the local high of $48,970. Conversely, a drop below $37,980 could initiate a deeper correction towards $34,800.
The moving averages have completed a bullish crossover on the 4-hour chart, and the RSI is nearing the overbought region, indicating a bullish comeback. The rally could reach the $43,500 level and then $44,700. On the downside, the moving averages will likely act as strong support. A drop below the simple 50 moving average could turn the advantage in favor of the bears, potentially leading to a drop to the $39,500 level and then to $37,980.
