Regional US banks are experiencing a decline similar to last year’s troubles. Bitcoin prices have jumped to $44K after a period of stagnation. Investors are hopeful, with some foreseeing a potential surge to $1 million, reminiscent of the financial crisis.
Bitcoin and other altcoins are gaining traction amid China’s economic uncertainties. Could this be the start of a “Pre-Halving Rally” for Bitcoin? Let’s see.
Bitcoin and Ethereum Rebound, but Caution Advised
Bitcoin has risen to around $44,000, and Ethereum to approximately $2,400, with a decrease in selling pressure leading up to the Bitcoin Halving event in April. Despite this, trend levels remain relatively low compared to the previous month, indicating the need for vigilance.
The cryptocurrency market as a whole has experienced a 2.3% increase over the past 24 hours. Alongside Bitcoin, other top altcoins like Solana, Avalanche, Ethereum, BNB, and Dogecoin have also witnessed gains ranging from 1.7% to 3.4%.
Following the surge, the crypto market saw significant sell-offs totaling $102.94 million within 24 hours. Bitcoin and Ethereum bore the brunt of these liquidations, with $31.57 million and $18.34 million respectively. Such liquidations occur when traders’ positions are automatically closed to prevent further losses as prices move against them.
Factors Behind Bitcoin’s Surge to Nearly $44K
The recent surge in Bitcoin prices, reaching nearly $44K, can be attributed to various factors. While spot Bitcoin ETFs were the primary driver of price increases last month, recent gains may also be influenced by expectations of spot Ethereum ETFs and spot Bitcoin ETF options. However, the market’s 2.3% gains over the past 24 hours are relatively modest, reflecting uncertainty surrounding the approval of these products.
According to Bloomberg ETF analyst James Seyffart, spot Bitcoin ETFs have attracted significant investment, totaling $1.68 billion in inflows. This figure considers the outflows from Grayscale’s Bitcoin Trust (GBTC). Locking Bitcoin in ETF trusts can boost prices by increasing demand for the limited supply among investors.
Arthur Hayes suggests that the sudden collapse of the banking sector, exemplified by NYCB’s bankruptcy news and shaken investor faith in banks, is contributing to Bitcoin’s surge as a safe haven.
Bitcoin Price Analysis: Up Next
Technically, Bitcoin is currently trading above $44,000 and the 100-hourly Simple Moving Average. If Bitcoin faces rejection at the $44k mark, a significant downward movement could be anticipated. However, if it manages to break out of $44k and consolidates, the next significant barrier will be at $45,000.
A successful break above $45,000 could signal a further uptick, potentially targeting $45,750 as the next key level for bullish momentum. However, clearing these resistance levels is crucial for Bitcoin to maintain an upward trajectory.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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