Bitcoin Price Touches $28,500 – The Upward Journey Continues…
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The Bitcoin price has experienced a significant surge in value over the past ten days, increasing by almost 30% in value in just a week. The token reached a nine-month high of $28,527 on March 20th. This unexpected trend has left many traders and investors wondering whether the price will continue to rise or if it will decrease again. Experts have weighed in on the topic, offering their insights on what could happen in the future.
As the market picks up momentum from the start of the year, market experts have a reason to believe that the bear market has come to an end. Scott Melker, a trader and host of a popular podcast, sees the latest performance of bitcoin as a positive sign. According to him, Bitcoin has confirmed a new bullish trend by making its first higher high since the all-time high of $25,212. He adds that the price could still drop, but it would be a new trend and not a continuation of the previous bear market.
Another well-known analyst, Rekt Capital, shares the same belief and relies on historical chart patterns to support it. In his opinion, Bitcoin will establish a new bull market in the next few weeks, and this will be verified by the monthly close above the Macro Downtrend.
Bitcoin has been able to reach this new high for the year, as anticipation of the interest rate decision from the Federal Reserve grows. Market experts are closely monitoring the price of the token and believe that bitcoin might create bearish divergences in the short term.
The token has remained relatively strong throughout the March and has also become progressively dominant over the month. Many investors shifted their investments in altcoins to bitcoin, which has contributed to the recent rally.
Several crypto traders are optimistic about Bitcoin’s upward trajectory in the coming days, with some predicting a rise to the $33,000 to $35,000 range. One prominent analyst in the industry suggests that Bitcoin’s future valuation is positive, with $27,700 being a level that bulls will have to maintain for the token to move past the $30,000 level.
Numerous Factors At Play For Bitcoin
Bitcoin’s recent surge in price has been fueled by a spike in the number of non-zero balance wallets, indicating growing adoption and potential price appreciation. According to Bitfinex, nearly a million new addresses have been added to the Bitcoin network, with small buyers leading the buying as new retail money came to BTC.
The fear and greed index has also hit its highest level this year at 68. The index measures the sentiment of the market toward Bitcoin and is currently indicating high investor confidence. A recent poll conducted by Sentiment showed that more than 500 of the 1,000 voters believed Bitcoin would move past $30,000 in the near future.
Bitcoin’s upcoming halving event in March 2024, which will reduce the block reward to 3.125 BTC, could also lead to an increase in the token’s price. Based on this move, bitcoin could likely touch $45,000 by the end of the year.
However, the daily chart shows that if the 21-day moving average continues to supersede the 9-day moving average, it will be possible to determine the future movement of bitcoin. Any movement below the moving averages could hit the supports at $24,000, $22,000, and $20,000.
On a technical front, the Relative Strength Index has been hovering near the overbought region, indicating a bullish movement for Bitcoin. If the price crosses above the channel, the token will face further resistance levels of $34,000, $36,000, and $38,000. In the short term, the Bitcoin price is seen moving sideways, with the current candle potentially targeting the support level at $24,000 and below.
Bitcoin’s future remains uncertain and subject to a variety of factors. The cryptocurrency market is highly volatile and can be affected by regulatory changes & investor sentiment, and macroeconomic conditions. However, the recent surge in non-zero balance wallets and investor confidence indicates that Bitcoin could continue to experience growth in the short term.
The halving event in 2024 and other potential catalysts could also lead to further price appreciation, at least in the short term. Investors should remain cautious and do their own research before making any investment decisions.
All Eyes On FOMC
While there are several factors at play that can decide the Bitcoin price, the upcoming FOMC meeting will be an important event that could impact the price of the token significantly. The meeting will take place on the 21st & 22nd of March, and by the end of the meeting, updates regarding the rise of interest rates for the coming months will be announced by Fed officials.
On March 7, Federal Reserve Chair Jerome H. Powell, said that the U.S. central bank was likely to raise rates higher than expected. “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” and this statement caused the price of bitcoin to fall below $22,000.
The banking crisis, on the other hand, supplemented the price increase of bitcoin as investors started to lose faith in traditional equity assets. It’s now believed that the Fed could decide to keep the interest rates constant for now, to provide some relief to the distressed banking sector.
Aligning its monetary policy with market expectations could further allow the Federal Reserve to drive gains in the equities and cryptocurrency markets, enabling Bitcoin to extend its uptrend and cross the crucial $30,000 mark, a significant confirmation of the current bull market cycle.
Considering all these factors, it’s expected that bitcoin will continue to follow an uptrend in the near future, and the $30,000 price target is in sight. The only wait now is for an announcement from the FOMC meeting.
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