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Bitcoin remains above $65,000: what prospects will the cryptocurrency have?
Today, Bitcoin prices retained much of their recent gains. (Photo illustration by Chesnot/Getty… [+] Images)
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Bitcoin prices have maintained their strength over the past 24 hours, retaining the vast majority of the gains materialized during the cryptocurrency’s latest rally.
At the time of writing, the world’s largest digital currency by total market capitalization was trading above $65,000 CoinMarketCap data.
The digital asset held that value after rallying more than 8% in less than 24 hours, reaching its highest since around April 24 and then extending those gains, further data from CoinMarketCap shows.
Focusing on bitcoin’s near-term outlook, several market observers have highlighted key fundamental developments that could impact the price of the digital asset, as well as pinpointing price levels that could provide key support or resistance.
Brett Sifling, investment advisor at Gerber Kawasaki Wealth Management and Investmentsoffered some input on this situation.
“Bitcoin has remained range bound since late February as the halving event was not enough to push it to new highs,” he said via emailed comments.
“I don’t see any other major catalysts on the horizon, other than greater institutional adoption. There is also the possibility that the Fed will cut rates later this year, which could bring more optimism for risky assets like Bitcoin,” Sifling said, referring to the federal funds rate, which is controlled by policymakers in the country. Federal Reserve.
Decisions by the Federal Open Market Committee have generated a lot of visibility in recent years, as these government officials have pushed the federal funds rate, which impacts broader borrowing costs, to its highest level since 2008.
This, in turn, created a significant headwind for economic activity, but inflation figures remained stubbornly high in many places despite high borrowing costs.
Yesterday, headline inflation data that fell short of economists’ estimates was cited as a catalyst that helped bitcoin prices rally. This development has been credited with helping to give investors greater hope that the Fed will cut rates soon.
Technical analysis
As for key price levels that technical traders should monitor going forward, Sifling offered some guidance.
“The recent March all-time high of around ~$74,000 is a key level to watch, as are the lows of this recent range at ~$56,500,” he said.
Grant Tungate, business development manager at BlockForce Capitalthey also shed light on this topic.
“I don’t want to make any predictions, but I will provide some comments on levels that I think are important,” he said via email.
“Key levels are the new 30-day high at ~$67.3k, then the all-time high at ~$74k. On the downside, the 30-day low, ~$57,000, is an important area,” Tungate added, identifying figures similar to those identified by Sifling.
Armando Aguilar, an independent cryptocurrency analyst, also offered some suggestions on this topic.
“The next critical support level for BTC lies at the high $62,000 range, if BTC struggles to maintain these levels it could retest the low $61,000 range,” he said.
“Resistance levels for BTC are around the mid-$66,000s, and if broken above, we could see the blue chip cryptocurrency reach mid-to-high $68,000,” Aguilar added.
“ATH provides a key resistance level that would require a resumption of BTC inflows, as has occurred in the first 2 months since launch. We do not immediately see levels breaking above ATH as most custodians have reached maximum distribution capacity , thus recording low inflows into BTC,” he concluded.
Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, EOS and sol.