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The digital currency ecosystem has recovered from the intense drawdown of the past week with the combined crypto market cap soaring to $1.61 trillion after jumping by 3.69% in the past 24 hours. As expected, Bitcoin (BTC) is leading the momentum after jumping by 3.97% to $41,688.27, marking its first big break since breaching the $41,000 resistance point.
The Bitcoin price suffered a relatively lengthy period of drawdown, and since Jan. 12, it has not retested the $43,000 price mark amid a bearish takeover. The sell-offs coincided with the time the spot Bitcoin exchange traded funds (ETF) products were approved by the United States Securities and Exchange Commission (SEC).
The emergence of the product came with an unexpected twist as investors pulled out funds from the Grayscale Bitcoin Trust (GBTC) into other issuers because its fees were too bogus. The movement of funds was counted as a major liquidation event that rattled the markets and stirred investors to give up their Bitcoin holdings.
As of writing, there has been a relatively slower pace in the exodus of funds from GBTC, and this has helped Bitcoin maintain its grip on the $41,000 support zone.
How high can Bitcoin rise?
Bitcoin is currently trading for $41,688.27, its potential for further growth lies in different factors bordering on both fundamental and technical considerations. On the technical scene, the BTC/USDT daily chart is flashing a relative strength index of 47.71, showcasing that the coin is far from being bought and has the tendency for a bullish flip.
Complementing the RSI are the Bollinger Bands as the current Bitcoin outlook shows a reverse in trend toward the upside. This nudge for further growth can be solidified when spot Bitcoin ETFs stabilize completely with a lower funds exodus being recorded.
In the longer term, the hype surrounding the upcoming Bitcoin halving event will likely shape sentiments that can further help BTC make its big breakthrough. Per projections, Max Keiser sees a $50,000 immediate target for the coin in the short term.
Alex Dovbnya
