Bitcoin touches above $57000

Bitcoin bulls briefly managed to reach above $57000, a price level last seen in late 2021, amid the larger trading volume in spot BTC ETFs.

On February 26, the trading volume figure in BTC spot ETFs reached new all-time high – $2.4 billion (Grayscale Bitcoin Trust - GBTC).

High trading volumes observed on Monday may indicate strong investor interest in these new avenues to gain exposure to Bitcoin.

BTC spot ETFs’ funds flow data has also displayed an improvement with GBTC posting the lowest net outflow ($22.4 million) since it’s inception, brining the total net inflows up to $403.06 million on February 26 ($232 million – February 23).

Highly anticipated halving, scheduled for April 19, may also extend support to the major cryptocurrency.

Bitcoin halving is a pre-programmed event that cuts the reward for mining new bitcoins in half, potentially impacting the price due to a decrease in new supply.

From the technical perspective …

• Current price is trading above key simple moving averages (21, 50, and 100-period SMAs), indicating an overall bullish trend
   
• The RSI is at 81.73, which is above the 70 threshold (<30 – oversold, >70 – overbought), suggesting that the market may be overbought and due for a technical pullback
   
• The MACD line (2432.517) is above the signal line (2295.963) and both are above zero, indicating a bullish momentum
   
• A pull above the $57000 may further propel the price towards major $60000 psychological level
   
• A break below the $56000 level may give the BTC bears an opportunity to try and drag the bitcoin towards $51000