Bitcoin’s (BTC) price has risen back above $71,000 U.S. as the selloff in the world’s largest cryptocurrency reverses course.
Analysts say that Bitcoin’s price has now cleared several important support levels and that a correction in its price appears to be over.
Some analysts say they now expect Bitcoin to retest its all-time high of just under $74,000 U.S. reached on March 14 of this year.
After hitting the all-time high, Bitcoin quickly sold off and fell into correction territory, defined as a decline of 10% or more from a recent peak.
However, market observers have been quick to dismiss the decline in Bitcoin’s price as short-term profit-taking on the part of investors.
The cryptocurrency’s price had fallen as low as $60,000 U.S. before recovering in recent days.
An upcoming halving event in April, which is when the amount of Bitcoin that can be mined is reduced by 50%, and lower interest rates in this year’s second half are expected to provide tailwinds to the cryptocurrency in coming months.
Year-to-date, Bitcoin’s price has now gained 60%, outpacing a 10% gain in the benchmark S&P 500 equity index.
