Bitcoin Price Reaches $28,000 - Is $30k In Sight This Week?

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Bitcoin continues to maintain a strong footing, as it climbs above the $28,000 level on Sunday, stretching the bullish run for the token for the last 10 days. Market participants are closely eying the token’s performance, and expect $30k to be in sight this week. Let’s take a closer look at the token’s performance to determine if holding your asset a little more is a strong move.

Bitcoin Climbs Past $28,000 For The First Time In Nine Months

Bitcoin, along with most other altcoins, painted green candles on Monday, paving way for yet another successful week after displaying a spectacular performance over the last one. The number one cryptocurrency token rose above $26,500 on Friday, making up for a month-long discouraging performance beginning Feb 21st.

Once the token managed to climb past the $25k level, investors gained the confidence for Bitcoin to challenge its next possible hurdle at $28,000. The last weekend witnessed the token climb above $27k and continuing the upwards momentum the next day, challenging and rising above the $28,000 resistance.

The recent price breakout has reinforced the determination of optimistic investors to sustain the upward trend, keeping it above the key support level of $28,000 until the upcoming day close, which is only a few hours away.

It is noteworthy that the latest upward movement has driven the overall cryptocurrency market beyond the $1.18 trillion threshold for the first time this year. Additionally, the figure has continued to increase over the weekend and is currently approaching $1.2 trillion at the time of writing.

Market analysts attribute this recent market activity to diminished market liquidity and robust buying pressure. Events around the US banking crisis will be crucial in influencing the short-term price movement of the token.

Despite the collaborative efforts of the US government and other financial institutions, the banking sector remains apprehensive. Market experts have been emphasizing the vulnerability of the central banking system, and that it could persist in attracting more investors to Bitcoin, as it offers a better value proposition.

Bitcoin has climbed above the $26k level twice in the last week, and technicals suggest an optimistic outlook for the near future. Bitcoin’s spot and derivatives volume is expected to witness an increase as well.

Macro Economic Conditions Catalyze Bitcoin’s Price

The US stock market experienced a dip on March 17th, with the Dow and Nasdaq closing lower than the day prior. This combined with concerns over the management of Credit Suisse, one of the biggest financial institutions in the world, and a series of bankruptcies in the US have collectively helped trigger the price of cryptocurrencies during the weekend.

The Swiss investment bank UBS agreed to acquire Credit Suisse, which alleviated some of the concerns. However, the Nikkei stock average continued to fall on the Tokyo stock market due to ongoing concerns about an economic recession.

These financial events have sparked discussions about interest rate hikes, with experts predicting that the Federal Reserve might not hike the interest rates further. This is a significant shift from the previous week’s market pricing of a 50-bps hike. Due to this high unpredictability in the market, investors are keeping a close eye on the economic policies of both the US and Europe.

On the brighter side, the US Department of Labor released February’s inflation data on Tuesday, which met market expectations for the most part, except for the US Consumer Price Index (CPI), which increased 6% year-on-year last month.

The figure represented a deceleration from 6.4% in January but remains far from the Fed’s targeted annual inflation rate. The European Central Bank also announced an increase of 50 basis points to its benchmark interest rate.

The financial sector’s recent turmoil has increased the popularity of non-traditional assets such as cryptocurrency, with many investors shifting their funds to crypto. Despite initially dropping alongside equity markets in response to the midweek banking and economic developments, Bitcoin and other altcoins quickly rebounded as the narrative of the token is a safe haven for investors was passed around.

In addition to this, the theme of bank collapses throughout March has further fueled investors’ interest in alternative assets. Silicon Valley Bank’s recent bankruptcy due to liquidity issues, and subsequent intervention from the US government to provide a bailout, has led to concerns among investors.

At the same time, there have been reassurances that the US banking system remains robust US Treasury Secretary Janet Yellen, with the Federal Reserve capable of supporting it through a new lending facility. In addition to this, the Swiss National Bank has agreed to help Credit Suisse with $54 billion to help it navigate the crisis.

Is $30,000 In Sight This Week?

While investors anticipate an altcoin season for the year, bitcoin continues to assert dominance, with the BTC dominance figure increasing by 4.5% since March 11. The last time bitcoin marked these figures was nine months ago. And this time, the token is maximizing its dominance at the expense of other major altcoins, including Ethereum and Solana.

Bitcoin has been moving quite opposite to the traditional markets, and the divergence between the two markets has been quite notable so far.

Data from Bitcoin’s network activity has indicated that despite the volatility of the token, an increasing number of investors have been finding the asset worth exploring. In the past two months alone, there has been an increase of 1.71 million wallet addresses on bitcoin’s network.

On a technical front, all the indicators have displayed a bullish outlook over the one-week period, according to data from TradingView. A strong buy sentiment has been reflected by the moving average indicators.

While all the other factors have led to an increase in the price of the token, Bitcoin’s future price in the near term will be dictated by macroeconomic factors and the behavior of the banking crisis. If the banking crisis continues to rise, bitcoin is expected to appear as a superior alternative and thus register a price increase.

Bitcoin can possibly reclaim the $30,000 over the week if the bullish outlook continues for the token. At the same time, investors are also keeping an eye on Ethereum, expecting it to cross the $2,000 level. This is after the second-largest crypto managed to climb above the $1,800 level on Monday.

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