3 reasons why Bitcoin can rally back to $60K despite erasing last week's gains
Bitcoin (BTC) plunged to below $38,000 on Monday, giving up all the gains it had made last week, which saw BTC/USD rally over $45,000.
The losses appeared primarily in part due to selloffs across the risk-on markets, led by the 18% rise in international oil benchmark Brent crude to almost $139 per barrel early Monday, its highest level since 2008.
Nonetheless, Bitcoin's inability to offer a hedge against the ongoing market volatility also raised doubts over its "safe haven" status, with its correlation coefficient with Nasdaq Composite reaching 0.87 on Monday.
Conversely, Bitcoin's correlation with its top rival gold came to be minus 0.38, underscoring they have been largely moving in opposite to one another during the ongoing market turmoil.
Keeping an open mind about crypto, but given the inflating US dollar and the stark reminder that governments can and will under certain circumstances freeze accounts and block payments, wouldn’t you think crypto would be having a moment now? Not seeing it in the price, so far….
On one hand, Bitcoin's potential to continue its decline remains high amid the worsening geopolitical conflict between Russia and Ukraine and prospects of higher rate hikes in March.
Nevertheless, some technical and on-chain indicators are flashing bullish on lower timeframes, suggesting a potential price rebound towards $60,000 in the months ahead.
If history repeats, Bitcoin's recent decline to its multi-year ascending trendline support could set the stage for a potential rebound toward the $60,000 resistance level.
Notably, BTC's trendline support constitutes a technical pattern called ascending triangle in conjugation with a horizontal resistance level above. This setup has been active since December 2020,
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