The price of Bitcoin has surpassed the $70,000 mark, fueling a certain euphoric climate in the market. Does it make sense to expect the continuation of the bull run? Here are some considerations to make.
In recent months, the cryptocurrency market has shown signs of recovery, with the Bitcoin price finally breaking the $70,000 mark, a milestone long awaited by investors.
This event has sparked optimism in the sector, fueling predictions of a new bull run that could bring the price of BTC up to $100,000. What could fuel this rise?
The $70,000 break: the start of a new bull-run?
breaking above the $70,000 resistance is considered a significant technical signal that could pave the way for further gains. Many analysts believe that this breakout could serve as a catalyst for a new bull market phase.
Looking back at the history of Bitcoin, we can see that breaking key resistance levels often leads to significant price increases. This is especially true during times of high enthusiasm, like the period following the halving event and the introduction of new Bitcoin spot ETFs. The possibility, in the near future, of an introduction of passive investment solutions on ETFs listed on regulated markets makes this breakout a technical element to be carefully evaluated.
Looking at some technical indicators, a certain upward graphical orientation is noted. The RSI at 14 periods on a daily timeframe has bounced on the 50 points and has returned to point towards the overbought zone which, although on an academic level indicates an overprice zone, in BTC on a statistical level it has often opened the doors to renewed enthusiasm, bringing with it new increases. This euphoria could explode completely with the upward break of the upper part of the range in which the price has been trapped for months.
- BTC/USD, 1D
- Source: Baha.com
What could push the price of Bitcoin higher?
Expanding money supply, while it can cause macroeconomic complexities such as inflation, has historically driven the appreciation of finite-supply assets such as Bitcoin and gold. With central banks likely to begin a slow process of lowering interest rates, many expect a positive impact on the cryptocurrency market.
Furthermore, the recent Federal Deposit Insurance Corporation (FDIC) report, released on May 29, highlighted that 63 banks in the United States are at risk of insolvency, with unrealized losses of $517 billion. The case of Silicon Valley Bank and the voluntary liquidation of Silvergate Bank, together with the introduction of the Bank Term Funding Program by the Federal Reserve (FED), have created a climate of financial uncertainty which has incentivized investors to move part of their holdings on the crypto circuit.
These events naturally positively influenced the price of Bitcoin, which began a significant rise in response to the turbulence in the traditional banking sector. Many experts see this worsening of US financial conditions as an opportunity for BTC to further establish itself as an alternative to traditional financial systems.
Original article published on Money.it Italy 2024-06-06 12:34:27. Original title: Perché il prezzo Bitcoin arriverà presto a $100.000
