If you’re asking yourself, “Is Bitcoin a good investment?” Here’s some news for you.
Bitcoin was up modestly on Tuesday, following a string of increases in previous days. With a significant trigger coming this week, the largest cryptocurrency has a chance to extend its winning run if it can overcome critical technical levels.
Bitcoin’s price has grown by less than 1% in the last 24 hours to more than $30,375. Bitcoin has remained above the psychologically critical $30,000 threshold, which it crossed last week for the first time since April, approaching $32,000 at the top of current trade. The technical picture for Bitcoin appears optimistic in the immediate term, following such significant gains that have so far held, unlike the April surge, which was swiftly undone.
According to Katie Stockton, managing partner of technical analysis firm Fairlead Strategies, Bitcoin experienced a clear breakthrough, with upturns supporting an eventual break over long-term resistance above $31,900.Secondary resistance is $35,900, while initial support is near the 50-day moving average at roughly $27,200.
Bitcoin is indeed on a roll. Clearing $32,000 would open the path for advances over $35,000 and toward $36,000 — levels not seen since May 2022.
The release of the personal consumption expenditures index, which will also be in focus for the stock market and likely influence the Dow Jones Industrial Average and S&P 500, is one factor that might propel Bitcoin there this week.
While Bitcoin’s connection to equities has lately diminished due to negative regulatory pressures and positive endogenous sector investments, the publication of PCE data is a big macroeconomic event that might affect all risk-sensitive assets.
The PCE is the Federal Reserve’s favored inflation metric. Investors will be looking closely at the report on Friday after the central bank kept interest rates constant this month while warning that additional inflation-fighting rate rises might follow the first respite in more than a year of tightening financial conditions. A strong inflation reading might imply further rate rises, but signals of persistent price cooling may encourage the Fed to be less aggressive.
So, if you’re wondering, “Is Bitcoin a good investment?” It is when you know when to invest in it.
Beyond Bitcoin, Ether’s second-largest cryptocurrency was down less than 1% to $1,875. Smaller cryptos or altcoins performed differently, with Cardano losing 3% but Polygon remaining nearly unchanged. Memes Coins were down, with Dogecoin down 1% and Shiba Inu down 2%.