Bitcoin Bulls Triumph Despite Bearish Calls; Bullish Outlook Fueled by ETF Expansion and Altcoin Divergence

Bitcoin price remains above the November 2021 supply zone of $58,375-$65,518. BlackRock has expanded its list of authorized participants, attracting more players to the BTC ETF market. BTC's 60-day correlation with altcoins has plummeted to multi-year lows in Q1 2024 compared to the same period in 2023 and 2022.

Bitcoin Bulls Stand Tall Amidst Short-Term Bearish Calls and Bullish Sentiment

Despite lingering bearish whispers from analysts, Bitcoin (BTC) price has remained resilient this week, trading above the $68,000 mark. This bullish trend is buoyed by a confluence of factors, including strong support from the crypto community, the expansion of authorized participants in the BTC ETF market, and declining correlations with altcoins.

BlackRock Expands Authorized Participants, Boosting BTC ETF Participation

BlackRock, the asset management behemoth, has announced the addition of several prominent financial institutions, including Goldman Sachs, Citadel, UBS, and Citigroup, as authorized participants (APs) for its IBIT spot Bitcoin ETF. This move is a significant endorsement of the cryptocurrency and is expected to attract more players to the BTC ETF market.

Declining Correlation with Altcoins Signals Bitcoin's Dominance

Data from Kaiko Research reveals that Bitcoin's 60-day correlation with altcoins has plummeted to multi-year lows in the first quarter of 2024. This divergence suggests that Bitcoin is increasingly asserting its dominance in the cryptocurrency market.

Strong Bullish Indicators Point to Potential Price Surge

Technical indicators such as the Relative Strength Index (RSI), Awesome Oscillator (AO), and Moving Average Convergence Divergence (MACD) all present a bullish outlook for Bitcoin. The RSI remains firmly above the 50 mean level, indicating strong buying momentum. The AO and MACD indicators are also in positive territory, further supporting the bullish sentiment.

Bitcoin Price Outlook: Bullish Momentum Amidst Supply Zone and Support

Bitcoin price is currently holding steady above the weekly supply zone ranging from $58,375 to $65,518. This level provides immediate support due to the 200-day Exponential Moving Average (EMA). A sustained breakout above the $69,000 threshold could trigger a significant surge in buying pressure, potentially propelling Bitcoin to reclaim its $73,777 peak.

In a highly bullish scenario, Bitcoin could exceed this peak and potentially reach $75,000. The bullish trend is further reinforced by the low trading volume and high accumulation activity among long-term investors.

Bearish Counteraction and Potential Buying Opportunity

Should bearish forces attempt to regain control, a drop below the midline of the supply zone at $61,947 could lead to a continuation of the downtrend. However, this scenario could present an attractive buying opportunity around the $60,000 threshold or below it.

Conclusion

Bitcoin's price action this week paints a promising picture for the cryptocurrency. Despite lingering bearish calls, the market is exhibiting strong bullish sentiment, supported by a confluence of factors. The expansion of authorized participants in the BTC ETF market, declining correlations with altcoins, and positive technical indicators all point to Bitcoin's continued dominance and potential for further price gains. While short-term fluctuations are possible, the long-term outlook for Bitcoin remains bright as it consolidates its position as a global digital asset.