Bitcoin Price: BTC Blast Off Surpasses $53,000, Igniting Pre-Halving Rally?

Bitcoin price was navigating a crucial zone between $50,800 and $52,000 of demand and supply until mid-US hours on Monday when it broke above $53,000 for the first time since 2021. If this uptick continues, Bitcoin might close the week above $55,000 amid the potential to rise above $60,000 before halving.

Bitcoin Price Update: Can Increasing AUM Shape Sentiment In March?

Despite the stalling due to an increase at $52,000, and by extension, $53,000 the general outlook of the market has remained bullish since the ETF approval in January.

Digital asset investment products, otherwise referred to as assets under management (AUM) continue to perform exceptionally well, with $598 million in total weekly inflows, according to CoinShares Research blog. Bitcoin recorded weekly inflows of $570 million in the previous week, boasting $5.6 billion in year-to-date inflows.

This massive increase in net inflows marked the “fourth consecutive week of inflows.” So far, year-to-date net cumulative inflows surged past the $5.7 billion mark, with the US leading the rest at $610 million. Grayscale recorded more outflows of up to $436 million in the previous week.

However, the blog noted that “Blockchain equities continued to see outflows totaling US$81m last week, suggesting equity investors are a little cautious at present.”

Despite the persistent outflow at Grayscale, the total AUM topped at $68.3 billion — the highest level since December 2021. Investment products still have some ground to cover before reaching the all-time of $87 billion at the peak of the previous bull run in November 2021.

Where To Next As Bitcoin Upholds Crucial Weekly Support?

The black horizontal ray on the chart represents a very important level from as far back as September and December 2021. Although it served as resistance then, Bitcoin recently flipped it into support, suggesting that the path of least resistance is to the upside.

In addition to immediate support at $50,800, the Moving Average Convergence Divergence (MACD) has flaunted a buy signal on the weekly chart since October, and this to a large degree is bullish for Bitcoin price.

A bullish rectangle pattern on the four-hour charts implies that a solid breakout is in the offing. Therefore, it may be prudent to hold onto the long positions, or keep buying the minor dips anticipating gains above $53,000 for the initial phase and towards $60,000 for the second recovery phase.

Although the MACD is slightly bullish in the four-hour range, the trend is not clearly to the upside, mirroring the rectangle pattern.

Intraday traders would be on the lookout for a break above both the 50-day Exponential Moving Average (EMA) and the 20-day (the red and blue lines on the chart). Such a move could turn attention to BTC by encouraging confidence in the bullish outlook.

The bullish rectangle pattern means that the next likely outcome will be a breakout to the upside with the possibility of pushing BTC to the range between $53,000 and $54,000 in the short. Further movement will depend on the market sentiment, which is bound to improve, especially with Bitcoin ETFs gaining momentum.

Traders cannot immediately rule out the possibility of a deeper sweep at lower support areas like $50,000 and $48,000, considering Bitcoin is not out of the woods yet amid the consolidation.

Nevertheless, the halving in April set to disrupt supply while demand increases is a factor likely to keep Bitcoin buoyed by investor optimism.

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