Bitcoin Price Reaches $27,200 - Is $29k Coming Today?

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Bitcoin has recently managed to break above the $27,200 level after a rather discouraging performance throughout the first half of March. Investors are now curious about the token’s performance from here on, with many anticipating a hike to the $29k level.

Bitcoin Reaches $27,200 Turning Around March In Its Favour

The price of Bitcoin is on the rise and people are optimistic about the current condition of the market. Right now, Bitcoin is trading at around $27,228 with an increase of 0.57% over the past 24 hours. This positive sentiment is being driven by several factors, including high-volume trading and institutional investors entering the market.

While there have been some minor pullbacks in recent days, the overall outlook for BTC is still bullish. If the current momentum continues, the next resistance level at $28,000 could be reached soon. However, if selling pressure increases, the price could drop back down to around $26,000.

Looking at the charts, we can see that Bitcoin has been consolidating for some time but the trading volume has increased significantly, which suggests more investors are getting involved. The Moving Average for the token is currently at $22,521 and the MACD is bullish, indicating high momentum.

The Relative Strength Index (RSI) has been trading in the overbought zone, which further confirms the dominance of the bulls. The hourly moving average indicator is also just below the current price, which is another positive sign.

In the short term, the 4-hour Bitcoin price analysis shows that the token has been moving sideways, attempting to keep its position above $27k. The RSI and MACD are both trading in the bullish zone, suggesting continued growth.

So far, things are looking good for Bitcoin and people are feeling positive about the market. If the current trends continue, we could see even more growth in the coming week. As for what triggered the current growth of the token, here’s an overview.

Banking Crisis & Interest Rates Push Bitcoin’s Price

The US is currently under its second biggest banking crisis, with Silvergate, Silicon Valley Bank and Signature bank witnessing a downfall just last week. Inadequate risk management, along with hostile market conditions, have been attributed to be the cause of the downfall.

Credit Suisse, the second-largest Swiss bank too, was caught in the crisis and demanded a $54 billion rescue package from the Swiss Central Bank. Naturally, with the far-reaching implications of the banking crisis, people are turning to cryptocurrencies as a better alternative. This has escalated the growth of tokens across the market, including Bitcoin.

As a result of the financial crisis, approximately $300 billion has been injected into the economy according to data from the Federal Reserve. This reversed months of liquidity withdrawals under the Federal Reserve’s quantitative tightening policy and spiked an uptrend in the cryptocurrency market.

The Fed has also discounted the implementation of a 50 basis point hike in interest rates as growing concerns about a banking collapse take momentum. An increase of the federal funds rate by 25 basis points by the Federal Open Market Committee is expected to take place instead.

Bitcoin’s value has been significantly affected by inflation and Federal Reserve rate hikes. Whenever the Fed’s interest rate decision becomes uncertain, the dollar index tends to decline. At present, the dollar index stands at 103.86 and could continue to decrease. This may work to BTC/USD’s advantage as a falling US dollar often leads to a rise in Bitcoin’s value.

The token also found optimistic support, as the CEO of Binance Changpeng Zhao discussed the resistance of bitcoin to inflationary pressure & the fact that the currency can’t just be printed out of thin air, unlike traditional fiat currencies.

A $300 billion rescue package from the US government has been suggested as the money printed “out of thin air” in response to Zhao’s tweet praising bitcoin.

Will Bitcoin Climb To $29,000 Anytime Soon?

Bitcoin’s recent surge in liquidity and price can be attributed to a new injection of funds into the cryptocurrency economy. This has attracted more investors who are seeking alternatives to traditional investment options in the face of economic instability and currency fluctuations.

This liquidity injection could also lead to short-term market instability and regulatory challenges, including potential threats from hackers who can steal funds and digital assets from the public. Regulators are making efforts to ensure that cryptocurrencies are used for legal purposes only and not to promote illicit activities such as terrorist financing or money laundering.

Despite the risks involved with Bitcoin, such as volatility, fraud, and hacks, it is likely to remain a popular investment option for traders seeking to benefit from the crypto market. Bitcoin’s fixed supply of 21 million coins and the increased demand resulting from the new investors have made it more valuable.

The recent collapse of traditional finance banks has also contributed to the rise in Bitcoin’s value as investors turn to more stable options. The uptrend in Bitcoin’s price reflects the uncorrelated asset narrative, as it depends on the negative correlation with the US dollar and rallies amidst the banking crisis of 2023.

The collapse of some stablecoin platforms created initial selling pressure, but investors quickly recovered and began investing in Bitcoin, which is relatively more stable.

Capital inflow into Bitcoin is the main reason for this rally, making the bearish divergence a buying opportunity, provided BTC holds above the $21,405 support level. The next target for the token would be the upper limit of the sell-side inefficiency, stretching from $26,877 to $29,220.

However, a decisive flip of the $21,405 support level in a three-day chart would invalidate the bullish projections for BTC, triggering a deep correction that rebalances the imbalance on the buyer’s side. Sellers could take this pullback to the next level and drive Bitcoin’s price lower to levels observed at the start of the year.

Bitcoin’s recent liquidity injection & the recent collapse of traditional finance banks have contributed to the rise in Bitcoin’s value, as it is seen as a more stable option. The uptrend in Bitcoin’s price is expected to continue if the traditional banking market continues to suffer.

Currently, a further collapse of banks could be the catalyst that triggers the price of the token and makes it cross the $29,000 level. Otherwise, the token will have to make gradual progress over the week, supplemented by increasing trust in the alternative, to drive the price above the desired level.

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