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.
So far, so far this year the Bitcoin rises 70%, making the asset one of the best investment options of 2023.
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.
“Bitcoin has remained resilient over the last week, which has led to a general improvement in market sentiment,” says Joe DiPasquale, CEO of crypto asset manager BitBull Capital. This expert highlights that the queen cryptocurrency is trading above its 200-day moving average, which is “historically a strong indicator of bullish price action”.
However, DiPasquale believes that there is some uncertainty when it comes to assessing what the direction of bitcoin will be in the coming weeks. On the one hand, he indicates that there is potential for the world’s largest cryptocurrency to go as high as $36,000, but also enough risk to think of a retracement to $20,000 or $18,000.
“It is more indicative of institutional reluctance to offer liquidity in the space. Many cryptocurrency companies do not want to be caught in the middle of a battle between US regulators and the stock markets,” explains Conor Ryder, an analyst at the blockchain analysis company Kaiko in a statement collected by ‘Bloomberg’.
For his part, Mark Connors, director of research at digital asset management firm 3iQ, believes that retail investors are “on edge” at a possible increase in market share. “The “tourists” have definitely left. If you are in this, you have to understand that the volatility is there, you don’t know where it goes from day to day, but you understand the trajectory, the adoption… ”, he adds.
The guru Cathie Wood, pointed out that Bitcoin continues to show its role as a store of value, in its cryptographic mode, which again will lead to its price continuing to grow, in what she also considers to be exponentially in the future. Last November he was still betting on its value, if certain circumstances occur in the coming years, of $1 million in 2030.
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.
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.
Source: Ambito
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