As the crypto market reclaims $2 trillion again, Bitcoin seems to be making a strong move above $44,000. As of press time, Bitcoin is up 3.33% trading at $44,238 with a market cap of $836 billion.
The most important thing is that Bitcoin has given a daily close above its 50-day moving average of $42,500. Based on historical trends, popular crypto market analyst Lark Davis predicts a possibility of touching a new all-time high this March 2022.
Davis mentioned that “Last two times we crossed over this line BTC rallied by 54% and 47%. If history rhymes then we could see BTC rallying up into the 60k range in the next few weeks”. He further added:
The last two 50 day MA breakouts lasted 40 and 46 days until we saw peaks form for the price of #bitcoin. So new high for BTC late March? BTW the break 50 DMA break out in 2020 lasted 180 days. Food for thought.
A ton of institutional money also keeps coming to Bitcoin. Big market players have been accumulating BTC during this correction with MicroStrategy and El Salvador filling up their bags.
In another big announcement on Monday, February 7, KPMG Canada also announced that they will be adding Bitcoin and Ethereum to their balance sheet. This is another big corporate announcement for Bitcoin investments, and probably the first of 2022. We expect more companies to allocate some capital to Bitcoin ahead this year.
Bitcoin and Ethereum Taking the Lead
Looking at the charts, it is clear Bitcoin and Ethereum are acting as the north-star to drive the crypto market rally further. On-chain data provider Santiment reports:
Both Bitcoin and #Ethereum are thriving once again. $BTC is up to $44.4k for the first time since in over a month, and $ETH is back above $3,180 for the first time in 2.5 weeks. Trader returns on each network are at their most positive since October.
Apart from BTC, the altcoin space is also bustling with XRP and Polygon (MATIC) registering more than 10% gains each.