Elena R
Regional US banks are displaying signs of a slump, similar to last year’s turmoil. Bitcoin prices returned to $44K after a month of stagnation. Investors see an opportunity, with some anticipating a $1 million price spike owing to the echoes of the financial crisis. Bitcoin and other altcoins have gained popularity due to China’s stock market decline and financial uncertainty.
Is Bitcoin going into a “Pre-Halving Rally” a few days early? Find out.
Bitcoin Price Starts Fresh
Bitcoin has rebounded to around $44,000 and Ethereum to approximately $2,400, with selling pressure decreasing leading up to the Bitcoin Halving event in April. Despite this, trend levels remain low compared to the last month, suggesting to stay alert.
The crypto market as a whole is up about 2.3% over the past 24 hours. Alongside Bitcoin, other top altcoins like Solana, Avalanche, Ethereum, BNB, and Dogecoin have also seen gains ranging from 1.7% to 3.4%.
Right after the surge, the crypto market saw big sell-offs totaling $102.94 million in 24 hours. Bitcoin and Ethereum were hit the hardest, with $31.57 million and $18.34 million in liquidations respectively. These liquidations happen when traders’ positions are automatically closed to stop them from losing more money as prices move against them.
Reason Behind the Pull-up
However, the recent surge in Bitcoin prices, reaching nearly $44K, can be linked to several factors. While last month it was all spot Bitcoin ETFs that drove prices up, 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 takes into account the outflows from Grayscale’s Bitcoin Trust (GBTC). When Bitcoin is locked in ETF trusts, it 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.
What Next?
Technically, Bitcoin is currently trading above $44,000 and the 100-hourly Simple Moving Average. If Bitcoin gets rejected at $44k, expect a big flush, but if it breaks out of 44k and consolidates then 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 stay on an upward trajectory.
