Bitcoin (BTC) refreshed February highs on Friday as attention focused on the upcoming weekly close and a longer-term rally to $88,000.
Key points:
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Bitcoin hits its highest levels in ten weeks as markets abandon geopolitical nerves.
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BTC price strength may bring back $88,000 in just two to four weeks, a trader predicts.
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$72,800 becomes the level to watch for the next weekly candle close.
Bitcoin price local peak brings hope of $88,000
Data from TradingView confirmed new ten-week highs of $77,027 on Bitstamp.
BTC price action attempted to capitalize on recent strength across risk assets, with geopolitical tensions and uncertainty over global oil supplies increasingly priced in. A ceasefire between Israel and Lebanon appeared to further boost market confidence.
On Thursday, the S&P 500 hit 7,050 points for the first time in history, sealing its highest-ever close and its second all-time high of the week.
Commenting, crypto trader Michaël van de Poppe said that Bitcoin should soon gain more thanks to reduced macro volatility, notably in the VIX volatility index.
“As long as the VIX continues to fall, and we’re in a new equilibrium, where oil volatility goes down, Gold volatility significantly drops,” he wrote in a post on X.
“What will you start to see? More inflows in the $BTC ETF as allocators can allocate more towards Bitcoin.”
Van de Poppe referred to the US spot Bitcoin exchange-traded funds (ETFs), which have seen $330 million in net inflows week-to-date, per data from UK-based investment firm Farside Investors.
“That would also benefit altcoins and $ETH, as they’ll follow the path of Bitcoin,” he added.
“In that case, I see a strong case for Bitcoin continuing the rally to $85-88K in coming 2-4 weeks.”
Trader and analyst Rekt Capital, meanwhile, put $72,800 as the “pivotal” level to reclaim at the upcoming weekly candle close for BTC/USD.
“If Bitcoin wants to Weekly Close above the Weekly resistance ($72,810, blue), then price would need to hold the blue level as support on any upcoming dip,” he explained alongside a chart showing key price points.
“The last time Bitcoin rejected from the black resistance in mid-March, price also lost the blue level as support. Which is why a Daily Close below the blue level after any upcoming dip could see price drop back into the blue-blue Weekly Range.”
Trader warns of volume-led BTC price downside
Bearish perspectives included that of trader Roman, who maintained expectations of lower levels next.
Related: Bitcoin can grow ‘probably a lot bigger’ than $30T+ gold market — Analysis
Declining trading volume into the highs, he warned, was a telltale sign of fading momentum.
“We’re in a macro downtrend which when we see high volume continues downward. Low volume implies consolidation/correction to continue the overall trend,” he explained on X.
“The next high volume move likely takes us lower.”
As Cointelegraph reported, sub-$50,000 price levels remain a popular bet for Bitcoin’s next macro bottom.
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