After a low start to the week and the subsequent euphoria that led Bitcoin to briefly exceed $29,000, the Cryptocurrencies remain at firm levels, with highs since the middle of last year.
He Bitcoin It had a sudden jump this Thursday, March 30, which took it to close to US$30,000, a value that could be key if it manages to become a new support price. But then it moderated back to around $28,000. For his part, Ethereum remains close to $1,800.
Investors seem to seek refuge in cryptocurrencies when the tremors that caused the financial crisis of the banks in recent weeks have not yet finished.
Bitcoin: what the crypto market looks at
Regulation remains the top concern for Bitcoin bulls, especially after the Commodity Futures Trading Commission (CFTC) sued Binance for trading and derivatives law violations. The regulator wants Binance to return trading profits, income, salaries, commissions, loans, and fees it received from US citizens, in addition to paying civil penalties for violations.
Bitcoin’s price rise was also fueled by a shift in sentiment towards risky assets after US Federal Reserve Chairman Jerome Powell said interest rate hikes are no longer the default measure to curb inflation. The central bank understood that the current situation will likely “lead to more restrictive credit conditions for households and businesses, which in turn would affect economic outcomes.”
Fixed income investors earn more when interest rates rise, making buying stocks and commodities less attractive. Consequently, by reversing the strategy and adding $339 billion in liabilities in two weeks, the Federal Reserve opted to contain the banking crisis, which may cause an uncontrolled inflationary spiral.
What will happen to the price of Bitcoin and Ethereum?
The gurus foresee that both Bitcoin and the rest of the cryptocurrencies are entering a bullish cycle, although it is still premature to think that the so-called “crypto winter” has passed.
The popular trader and analyst Rekt Capital considered in the last few hours that the cryptocurrency market is about to leave its problems behind and is about to enter a bullish cycle.
“Next Saturday, the BTC monthly candle will have closed above the downtrend macro to confirm a new bull market,” Rekt Capital commented. For now, Bitcoin finds resistance to take $28,000 as support.
Fausto Botelho, a trader and financial analyst with more than 40 years of experience in the market, spoke to BeInCrypto during Bitconf 2023, saying that the market is “about to see Bitcoin break free from the shackles of the traditional market.” In his opinion, a major global economic crisis could be the catalyst for this separation.
For his part, the CEO and founder of the investment firm Capriole, Charles Edwards, has described the behavior of the Bitcoin price this year as a “bump & run” reversal and considered that it could shoot up to the u$ $100,000.
“The bottom of a bump-and-run reversal is a bullish reversal pattern that begins with a series of descending peaks. Excessive speculation drives prices down to extreme lows,” explained the Cointelegraph portal. “The price action then reverses the direction to the upside and marks the end of the downtrend,” he added.
Source: Ambito
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