Bitcoin Price Rally Continues, What’s next?

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By A D

Bitcoin’s price has been on a rollercoaster ride recently, as various factors have caused significant fluctuations in its value. As of April 7th, 2023, Bitcoin is trading at around $28,000 at the, up from $19,000 at the beginning of March. This represents a significant gain of around 10% in just over a month.

What’s driving this recent rally in Bitcoin’s price? One possible factor is the ongoing banking crisis, which has caused many people to lose faith in traditional financial institutions. Following the debacle of the banking system collapse in the U.S., BTC has had its best run since January 2021 as it went up by almost 67%. Bitcoin gained $26 billion in value in just one day, on 20th March, as investors sought refuge from the uncertainty surrounding banks. Famously dubbed as “digital gold”, many are turning to this asset class now. The coin’s correlation with S&P 500 is at its lowest since September 2021, further justifying the claim that digital assets could act as hedges against the vulnerabilities of traditional financial asset.
Bitcoin’s fixed supply and deflationary nature have been major factors in driving the crypto coin to the top. With a limited supply of just 21 million coins, Bitcoin is often compared to gold as a store of value and hedge against inflation.

a chart of the price canges of bitcoin ver march that shows it's significant climb
The market capitalisation of the tokens is now $539,048,502,581.20 following the recent fluctuations in the price of bitcoin.
Image Courtesy:coindesk

There are also technical indicators, like support levels, resistance levels and relative strength index, that suggest Bitcoin’s price could continue to rise in the near future. As it first started climbing that rally, Bitcoin broke through a key resistance level at $29,000, which could signal a bullish trend in the coming weeks and months. The coin has already seen an 8% increase this week alone. The next significant barrier, in the opinion of experts, is located close to the $30,000 mark, above which the price may increase to the $31,200 mark.

Bitcoin’s high ride could very well be associated to the Federal Reserve’s increasing interest rates, low performing employment rates and a looming recession, as well as the US Dollar decline. On the other hand, if a decline occurs, Bitcoin’s price is anticipated to find significant support levels between $26,600 and $25,200.

However, there are concerns that Bitcoin’s recent gains could be unsustainable, particularly if the broader cryptocurrency market experiences a downturn. In addition, there are still concerns about the regulatory environment surrounding cryptocurrencies, which could pose a risk to their long-term viability.

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