“If Bitcoin can break above this level next week in any meaningful way, it should gain a lot of upside momentum”Matt Maley, chief market strategist at Miller Tabak + Co, told Bloomberg.
The price of Bitcoin had been stuck in a price range between $46,000 and $33,000 in the first three months of the year, as the Federal Reserve and other central banks began to remove some of the stimulus measures they implemented. in response to the pandemic recession, leaving less cash for riskier assets, including cryptocurrencies.
Bitcoin
Still, Bitcoin rallied this month alongside broader gains in US stocks.
“As we test the top of the 2022 trading range for the fifth time, this is another one of those Bitcoin moments where the narrative could quickly change and investors pile in, driving Bitcoin price higher,” he said. . Antoni Trenchev, co-founder and managing partner of Nexo.
“It could be time to wake up from Bitcoin’s slumber in 2022,” he added.
It is worth noting that despite the fact that the price of crypto assets recovered in March, the aggregate trading volumes fell 30% compared to February and add five months in a row with a downward trend, according to a CryptoCompare report, which goes contrary to what is usually defined in the market as a “healthy” rise in the price of an asset.
Still, David Duong, head of institutional research at Coinbase Global Inc., noted that over the past eight weeks cryptocurrencies have seen a less steep decline than U.S. stocks, when it comes to historical volatility.
Stocks, for example, have seen a drop of two standard deviations on three different occasions over the past few weeks, while Bitcoin has seen a drop of one standard deviation.
“This decoupling is important in our view, because it suggests that crypto returns may exhibit less relative volatility compared to other risk assets amid some of the most challenging market conditions we have faced in recent history,” Duong wrote in a note.
“This could support an argument for more (relative) stability of cryptocurrencies in the short term,” he stated.
What triggered the price of Bitcoin
Experts point out that the boost in these assets will continue in the short term, as is the case with the rest of the financial markets. Additionally, fundamentals have been positive of late for digital currencies, amid good news from the regulatory front as fears have faded, at least for now, of a ban on cryptocurrencies in the US or the Union. European (EU). Specifically, the European Parliament has completely eliminated the clauses that pointed to a ban on the proof-of-work model – on which bitcoin is based – from the regulation of the Crypto Asset Markets (MiCA), which is under development.
The bill will continue to be debated and negotiated between the Parliament, the Council and the Commission, with the EU bodies working together to reach a final consensus that establishes regulatory provisions for the entire region. Now, all eyes will be on the UK as there are several reports that the UK will soon reveal plans to regulate the digital currency market.
On the other hand, the fact that the war in Ukraine has shown real use cases for the tokens has also contributed to the rise in prices, the most recent being Russia’s inclusion of bitcoin as a means of payment in exchange for oil for countries. considered “friends”, such as China or Turkey. In addition, experts indicate that purchases of Luna Foundation Guard (LFG) are driving the price. Specifically, last week it acquired 125 million dollars in bitcoins as part of the plan to accumulate a total of 3,000 million USDT in bitcoins as a reserve for the terra token.
Experts now indicate that the latest movements in bitcoin open the door for it to finally face the $50,000 level, which presents much greater resistance than the $45,500-$46,000 level, which it has already breached. “The bulls are in control of the price”, comments Naeem Aslam, an analyst at AvaTrade, “but it is important to note that the rally will be stopped unless it manages to overcome the next control zone”, he adds, and “once it breaks this resistance, it is very likely that we will see some serious bullish momentum.”
The price of the main cryptocurrencies for this March 25, 2022
ethereum
There was an event in the Ethereum network that caused its price to shoot up and that could sustain its value in the coming days. It is about the “merger” of Ethereum on the Kiln testnet and the upcoming switch to proof-of-stake (POS) consensus.
Data from Cointelegraph Markets Pro and TradingView shows that since this launch (March 15), the price of Ether is up 25% from $2,500 to a daily high of $3,193 on March 25, as that traders seek to secure their positions before the merger. Traders expect the bull run to consolidate by the end of the month.
Source: Ambito
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