The price of Bitcoin has broken through the $26,500 barrier of resistance. If Bitcoin consolidates above the $27,200 and $27,500 resistance levels, bullish momentum may begin to build.
Bitcoin is gradually making its way above the resistance level of $26,500. The price has been trading higher than $26,500 and the 100 hourly Simple moving average.
On the hourly chart of the BTC/USD pair, a crucial bullish trend line is forming with support near $26,600. This trend line is indicating that buyers have the upper hand. If the pair successfully breaks over the $27,200 and $27,500 resistance levels, additional gains are possible.
Bitcoin (BTC) experienced a green candle week with a gain of approximately 2.5%, followed by a modest decline on Monday as the market took a breather after an active week. There was some good news in the form of investment heavyweight BlackRock filing for a Bitcoin spot exchange-traded fund (ETF), and Fidelity was also trying to get into the crypto game further. This may have helped BTC recover after hitting three-month lows at the end of last week.
As several other cryptocurrencies are experiencing price declines, there is a question on every crypto enthusiast’s mind. Is Bitcoin a good investment? The most valuable cryptocurrency is making strenuous efforts to maintain its position at over $26,000. Because of this, Bitcoin’s price continues to increase, and it is already very close to reaching 46.5% of the whole market. If the trend continues Bitcoin will surpass 50% of the market share within the next few years. We have also witnessed several cryptocurrencies getting delisted from exchanges, including those that are now placed inside the top 10 in terms of market capitalization. Because the 200-week moving average (MA) is located approximately $600 higher than where BTC is trading at the moment, we still have plenty of room to advance once we go through another round of trading in a range, which is something I anticipate will occur this week.
Because so much took place over the previous week, the economic news for this week seems to be somewhat subdued in comparison. On Thursday, the results of the Purchasing Managers’ Index (PMI) are scheduled to be released. On Wednesday and Thursday of this week, the Chairman of the Federal Reserve, Jerome Powell, will testify in front of Congress. Powell is everyone’s favorite person in the Bitcoin community.
Undoubtedly, Blackrock is the most crucial piece of news to come out today. Is Bitcoin a good investment? The fact that the most significant asset management in the world has applied for a spot-based Bitcoin ETF was undoubtedly a pleasant surprise. However, it did come as a bit of a surprise.
This will probably lead to even more people using Bitcoin, and it illustrates that Blackrock is aware of a growing demand for BTC among its investors. The SEC has thus far turned down several proposals for Bitcoin exchange-traded funds (ETFs), but Blackrock may be able to succeed where others have failed. To begin, it boasts an excellent track record and a 99% ETF acceptance rate, both remarkable.
Second, it has incorporated a surveillance-sharing agreement to remove the possibility of market manipulation, which is one of the primary concerns of the Securities and Exchange Commission (SEC). Regardless, the market’s reaction to the news was favorable, and it arrived at a highly advantageous time to assist in maintaining Bitcoin’s price stability.
In addition, the value of the US dollar has dropped for the third week in a row, which is now working in Bitcoin’s favor. Is Bitcoin a good investment in this climate? The dollar index reached 102.30, down 1.2% from the previous week, and the indicator’s inverse correlation with Bitcoin certainly contributed to the cryptocurrency’s rise last week. As a result of the Federal Reserve pausing its plan to raise interest rates, this index may drop below 100 at some time in the future, which would unquestionably be beneficial to Bitcoin as well as the cryptocurrency market as a whole. In the coming four to six weeks, we need to see data demonstrating that inflation is dropping in the United States, which would serve to assist make the present rate rise pause more permanent.