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If you haven’t heard the news, Bitcoin is rocking its highest price since May 2022. In a time where major moves weren’t expected, it has suddenly gone well back up. When we say up, we don’t mean the regular price jumps that put it close to $30,000. This time, the
Late last night, Bitcoin went on a major run that seemingly had no fuel behind it. But, the price jump occurred due to some fake Bitcoin ETF news. While optimism around Bitcoin ETF’s has grown considerably lately, there’s been nothing on that front so far. On Tuesday, some media outlets
No good or fresh news on the Bitcoin price front. The debilitating price drops continue with slight shoots up that aren’t enough to get Bitcoin over the $27,000 hump. It’s clear that the market isn’t headed in the right direction, and despite some positive signs, it seems there’s always some
Bitcoin’s price is standing firm this week, which has been the case in the last few as well. However, this week it’s a bit different. The price has managed to float around $27,000-$28,000, which is impressive considering the global bank crisis and what’s on the horizon. The SEC just launched a large-scale offensive against leading US crypto exchange Coinbase which could put its future in jeopardy and deal a serious blow to cryptocurrencies.
The SEC has previously warned Coinbase not to let investors trade for unregistered coins. Which is all of them – over 400 in number, that haven’t been registered in the same way as stocks or bonds. That’s what the Securities Exchange Commission truly wants – to register cryptos as centralized assets. Its chairman Gary Gensler is bent on delivering that kind of blow to DeFi, and even if the suit could take years to develop, it could spell a lot of problems for Bitcoin’s price.
Instant Correction
Bitcoin’s price fell over 3% after Binance and its CEO Changpeng Zao were sued by the US Commodity Futures Trading Commission on March 27. Further tension arose when a US Federal Judge decided to postpone the proposed sale of Voyager Digital to Binance on the same day. To make things worse, geopolitical issues also impacted Bitcoin’s price once again as Russian president Vladimir Putin announced his intention to station tactical nuclear weapons in Belarus.
And, while none of these news was great for the crypto market, Bitcoin managed to persevered. The 3%+ drop was corrected in just a day, so Bitcoin rose back to the $28K level it held before. Such an instant correction is always a good sign. To make things even better, Bitcoin futures show no impact from the upcoming Binance case or the impending legal action against Coinbase.
Clear Skies Ahead
None of crypto’s derivative indicators were affected by the remote misses effect concerning Binance, Coinbase, and the SEC. Comapred to the past year or so, Bitcoin is stronger than ever. It’s a case of ‘What doesn’t kill you makes you stronger’, as it makes its way through new levels that were a dream just months before.
The crypto market is in solid shape as Bitcoin options traders are optimistic. Protective options are trading at a slight discount, which shows how unimportant the Binance news is. Same goes for the upcoming Coinbase case. There’s no huge market structure change right now, and that’s a good thing.
Until whales and arbitrage desks face a price correction higher than 3.5%, it’s all good. Right now, Bitcoin is flying just above the $28,000 mark, although there are no expectations of testing the $30,000 point soon. But, it’s all OK. Considering how hellish the last 12 months have been, we’re good enough as it is.
It’s always great to see Bitcoin holding its ground and staring in the face of adversity. Geo-political and legal troubles surely cause it pain, but right now, it’s just a scratch, and we’re glad it is.
The Bitcoin rally continues for a sixth successive week, seeing it reach heights that were unimaginable months or a year ago. The largest cryptocurrency—and the crypto market in general—was pummeled in the past 12 months, suffering one blow after another.
There was the FTX crypto exchange collapse which ruined a consolidation period which came after a couple of pandemic years. The world’s current financial crisis took its toll as well, but to everyone surprise, Bitcoin broke the link with traditional assets in the middle of a bank crisis.
Just this month, two major banks in the USA and Switzerland have collapsed after failed bank runs. And, when everyone thought that Bitcoin would fall through the cracks, a bull run seems to materialize in just the right time.
Holding Its Ground
Bitcoin hold its ground in the middle of a global bank crisis. Not just holding it, mind you – when the rally started, everyone thought it can reach a maximum of $24K or $25K. Weeks later, Bitcoin has stabilized at $28K, and we’re now talking about it going even higher. The bullish momentum is expected to last, as spot buying drives it forward. But, institutional investors are still selling, while the lack of whale buyers might spell an end to the rally.
That’s a far-off theory, though, as it’s been weeks before Bitcoin lost ground. Currently hovering at around $28,200, the latest rally shows that people still see Bitcoin as an alternative to stocks and bonds. Which is a great idea considering the demise of the Silicon Valley Bank and Credit Suisse. These are major banks that were recently liquidated after unsuccessful bank runs that left them in the dust. How did they lose the money? By reinvesting deposits in bonds.
The fact that whales are not looking to sell the current rally is encouraging. But, if Bitcoin is to retain the current level and go up, they must pop up at some point in the future.
Retain Investors on Spot Exchanges Help as Well
Another factor that’s been helping the current rally are retail investors on spot exchanges. They’re a driving factor behind the rally. Bitcoin addresses that hold less than 10 BTC are racing up to new heights. The current resistance is between $28,000 and $30,000 which is similar to the June 2022 breakdown.
Advanced investors are waiting for the Fed to announce new policy rates on March 22 before making further moves. The Fed’s rate announcement is likely to have some effect on the price and has been a driver for significant volatility earlier.
Regardless of what that happens, some smart experts have seen a correlation between Bitcoin’s latest run and gold’s price fractal from the 1970s. At the end of the 70s, the US inflation rate rose over 10% and held that level throughout the 1980s. In the worst of this inflation crisis, gold rose 750%. A similar fractal may be potentially back in Bitcoin, just like the sky-rising inflation.
If history repeats itself, Bitcoin investors will have many reasons to celebrate.
After a few relatively depressing weeks of price drops, we’re finally seeing a Bitcoin rally that was supposed to happen much earlier. On Monday and Tuesday, Bitcoin enjoyed the perfect start to the week. It regained the level it saw below it fell to $18K-$19K levels, and didn’t just go back to where it was before, but even shot higher.
Briefly on Tuesday, Bitcoin shot up over $25,000 before falling to safe $24K levels. Currently hovering close to $25,000, it took the crypto market in the green once again. It’s a positive move after weeks of uncertainty, giving new and existing investors renewed hope that things are going for the better. Prices are up from the start of the year, even if inflation is rampant and the consumer price index rises.
Fall Back On Tuesday Afternoon
After a two-day rally that saw Bitcoin crush through the previously unreachable levels, it’s not well on its way to hitting $25,000. It initially broke the deadlock before a fall back on Tuesday afternoon to the $24K safety net. This happened right after all markets responded to the latest inflation figures which are over 6%.
The intraday high of $26,501 was reached early on Tuesday morning. It was the highest recorded price in nine months and fantastic news for crypto enthusiasts. More importantly, the biggest cryptocurrency by market volume posted the latest figures after the US Bureau of Labor Statistics showed that the Consumer Price Index was up 0.4%, down from the 0.5% mark gain in January. In the past 12 months including February, inflation rose by 6%. Compared to the previous 12-month period with 6.4%, this is a drop.
The modest price slowdown in price decreases means that the Fed faces less pressure to hike interest rates to keep inflation under control. It’s all positive news, of course, although no one’s sure if that’s the real case. But, the numbers so far are real, and Bitcoin is responding well. It’s even more surprising considering the demise of the SVB bank which lost billions and was liquidated on March 13.
Staring in the Face of Adversity…and Winning
The latest sharp price rise and regaining previously lost levels shows that cryptocurrencies are more resilient than we think. The world is facing an economic crisis, and Bitcoin continues to accelerate. It does that in response to high inflation, a banking crisis, and lack of predictability in the Fed’s inflation response. According to some people, the US is on the brink of a second bailout for banks, which is not good news for the fiat money sector. But, Bitcoin has responded great to all of that, going up by around 30% since SVB’s demise.
The dissolved bank’s failure will have technology repercussions that can go on for years. While crypto prices were down since the start of the year, they have surprisingly gone up to the delight of crypto fans. It’s another reminder that Bitcoin and cryptos will persevere, and that the fiat money sector will be given a run for its money.
It seems like the Bitcoin honeymoon is over, and it didn’t last long. Once again, it’s all about the Fed. According to the chairman, financial figure reports from January were stronger than expected, but the negative thing is that inflationary pressures are higher as well. The Federal Reserve chairman stated this before the US Senate Banking Committee on Tuesday, which coincided with Bitcoin dropping its price.
The price drop was over 1.5%, bringing Bitcoin way down to $22,000 levels. The price has seen a bit of a rebound, but nothing big to make a difference. The S&P 500 was down almost a full percent, which once again shows the strong relation between traditional and crypto markets.
Reasons to be Worried?
Since last year, it was clear that crypto investors had to be worried about the rampant inflation. Granted, the pessimistic figures shared by the fed and some experts didn’t come to life, and we’re glad they didn’t. But, nothing is off the hook yet. Inflationary pressure is running high, and the softening inflation trends from the past month or so have been all but erased.
Powell said that returning inflation to the 2% target is still a long way off. That’s likely to be a ‘bumpy road’ and the fight will be a long and challenging one. Last year, the central bank raised interest rates eight times to take demand down. However, after a slight cool off period in December, consumer spending and hiring soared in January, putting a lot of pressure on prices.
With the S&P 500 down for the month, Bitcoin followed suit. And that’s just the beginning according to some experts. For the past couple of months, Bitcoin has been on a roll, reclaiming price level after price level and shooting as high as $24,000. Everyone was optimistic until just a few days ago which sent the price back in a downward spiral.
Seasoned crypto trader Michael van de Poppe says that the night is darkest before dawn. In translation, things are about to take a wilder turn before the price goes back up. Once the inflation data comes higher at the next hearing, markets will start correcting. The Fed wants to continue its policy, and Bitcoin’s price may suffer further.
Long-Term Resistance Point
Looking at the long term technical data, there’s a resistance point at $22,600. A clearer support level is at $22,000. In the last week of February, Bitcoin was down over 4%. This shows that investors are concerned about contagion from the recent developments from Silvergate Bank. While crypto exchanges and stablecoin providers have denied exposure, the cut-off from the payment processor system has raised a few eyebrows.
All of these factors negative impact crypto prices, but there is a silver lining. While the drop was substantial, Bitcoin didn’t slide further below $20,000 levels. The storm will pass and we’ve seen this kind of situation before, so we can do nothing more than just ride it out.
If last week saw many positives for Bitcoin’s short-term price, this week we’ve seen it stalling. Bitcoin is unable to break past the $24,000 mark, sitting just below it. Which isn’t that bad of a thing – the latest peak brought it back to the highest level since last summer. It all points to a current break for the crypto market followed by a bigger expansion later.
The signs across the board remain bullish as we mentioned in our previous article. In the past 24 hours, there’s been a slight drop in price, with Bitcoin currently hovering around $23,750. Long-term holders are still buying BTC which is a good sign. Overall, Bitcoin remains up from the lows of $16,500 at the beginning of the year.
Profit-Taking Kicking In?
The slight drop in price is attributed to profit taking. At least that’s what experts think, but it shouldn’t harm the crypto market in the longer run. There’s been strong resilience on the $24K level, not to even mention $25K. Profit taking is kicking in after a great start to the year, and short-term holders are not the blame. Neither are new investors who are obviously in the crypto industry to make short-term profit.
The great news is that digital assets have outperformed stock markets at the beginning of 2023. The momentum might have stalled a bit. Cryptos and equities have performed correlated past year amid high inflation rates. They’re likely to remain under pressure this year until something drastic happens.
Crypto traders are optimistic that the latest jump is the beginning of the end for the ravaging bear market. It’s been a long crypto winter that almost wrote Bitcoin off. The late-2021 highs of $69,000 are long gone, but Bitcoin is slowly clawing its way up. It’s still far off the 2021 mark, but after a long time of lows, we’re finally seeing a greener market.
In the past week, crypto exchange BitFinex saw long-term holders buy over 18,000 coins in appropriate value of $420 million. The long-term holder supply is going higher and higher, which is a positive signal in the market marked by a 40% increase in price. It’s also a crucial on-chain supply feature of bear market bottoms, which means we’ll finally see the crypto spring we’ve been waiting for.
Must Close the 50-Month Trend Line
The US stock market is currently flat while the US Dollar is struggling to return to full strength. These macro-economic factors have an obvious impact on Bitcoin’s price. What needs to happen is for Bitcoin to close the 50-month moving average. This will increase the volume because at the moment, it doesn’t feel bullish at all.
According to crypto podcaster Scott Melker, Bitcoin’s price is still in no man’s land. It can shoot up to over $25,000, but he doesn’t expect it to hold the line. If it closes the 50-month trend line, though, things might start happening. March has been mentioned as a breakout month, so let’s see what happens in the weeks ahead.
