February 29, 2024 at 15:21 GMTModified date: February 29, 2024 at 15:21 GMT
February 29, 2024 at 15:21 GMT

Bitcoin’s bullish surge above $60K: A new high on the horizon?

Currently, Bitcoin trades above $62,000, with its market capitalisation soaring to $1.240 trillion, securing its position among the top ten largest financial assets globally.

Bitcoin’s bullish surge above $60K: A new high on the horizon?

Bitcoin ($BTC) has kicked off the day with significant momentum, continuing its recent bullish trend.

The leading cryptocurrency soared past the $60,000 mark, reaching over $64,000 for the first time since late 2021.

This surge, however, was met with a sharp decline, as Bitcoin’s value briefly plummeted to $59,000. Despite this, the cryptocurrency’s resilience went on full display as it quickly rebounded, with its price now stabilising above $62,000.

The top coin’s market capitalisation has surged to $1.240 trillion as well, securing its position among the top ten largest financial assets worldwide.

Additionally, Bitcoin’s dominance in the cryptocurrency market has seen a notable increase, gaining nearly 3% in under a week.

This rise can be attributed to several factors, including the recent launch of multiple spot Bitcoin exchange-traded funds (ETFs), which have attracted significant investment, echoing the fervour of the 2021 crypto bull market.

The ongoing year has marked a remarkable turnaround for Bitcoin, with its value more than tripling since the start of the year. This recovery is particularly noteworthy considering the 64% decline it experienced in 2022, amidst a series of scandals and bankruptcies that cast doubt on the future of digital assets.

However, the current market’s volatility has been evident, with CoinGlass reporting significant liquidations on centralised exchanges, affecting both bullish and bearish positions.

This volatility was also highlighted by the recent crash of Coinbase’s app, which experienced severe disruptions, locking out users and displaying incorrect account balances.

A March towards new ATH?

Bitcoin’s performance has been nothing short of spectacular, setting it on course for its most significant monthly gain in over three years. 

The influx of investments into listed Bitcoin funds has been a driving force behind this surge, bringing the cryptocurrency tantalisingly close to surpassing its previous all-time high.

Market analysts are now expecting the top coin to continue its bullish streak in the month of March as well. 

The founder of Fairlead Strategies, Katie Stockton, shares this outlook, amongst others, noting that Bitcoin has successfully breached the $48,600 resistance level. According to her, this signals a positive intermediate-term trend. 

While a short-term consolidation is expected, the momentum appears set for Bitcoin to challenge the critical resistance level at $64,900. 

Stockton’s analysis also underscored the sustained positive momentum and absence of overbought conditions, suggesting that Bitcoin’s upward trajectory could continue without immediate obstacles.

Navigating through resistance and support

The technical landscape for Bitcoin remains robust, with the cryptocurrency establishing a solid foundation above the $58,000 resistance zone. 

Following a brief dip, $BTC initiated another rally, breaking through several key resistance levels. Despite a temporary setback, it has regained its footing, surpassing the $60,000 mark once again.

Currently, Bitcoin is trading above this key price level and the 100 hourly Simple Moving Average, indicating a strong bullish trend. The presence of a connecting bullish trend line provides additional support, with immediate resistance located near the $62,500 level. 

A successful breach of this resistance could pave the way for further gains, potentially reaching the $65,000 and even the $66,400 levels.

However, if Bitcoin fails to overcome the $62,500 resistance, a downward correction may ensue. 

Key support levels to watch include $60,800 and the critical $60,000 benchmark. A drop below these levels could lead to a pullback towards the $58,000 zone. 

Technical indicators such as the Awesome Oscillator (AO) and the Moving Average Convergence Divergence (MACD) are currently in bullish territories, flashing long green histograms on their respective charts. The Bollinger Bands, however, hinted at possible volatility ahead they were seen widening and moving away from each other.