4 Reasons why Bitcoin rose to $ 58,000
The Bitcoin price has been showing green bullish candlesticks for 7 consecutive trading days, despite the US dollar continuing to rise. There are several factors that led to the increase in the price of the royal cryptocurrency.
The next resistance level is $58,354
The current valuation is a continuation of the” bullish ” season that began two weeks ago, and since then, the price of Bitcoin has been constantly moving up and down. There are a number of factors contributing to this:
Reason 1: The U.S. Senate passed a $ 1.9 trillion stimulus plan with 50 votes in favor and 49 votes against. President Biden signed a $ 1.9 trillion coronavirus relief bill on March 11, marking the official entry into force of a bill to provide fiscal stimulus to the U.S. economy.
Reason 2: According to data released on March 10 by the US Department of Labor, the consumer price index (CPI) rose from 262,231 to 263,161 in February, which is about 0.4% more than in the previous month, in line with economists ‘ expectations. The inflation index failed to beat expectations, leading to lower market expectations for a Fed interest rate hike.
Reason 3: Due to low U.S. consumer price growth in February, selling pressure on U.S. tech stocks eased, and the Nasdaq Composite index rebounded, rising from about 12,609 to 13,398 since March 8.
Reason 4: Inflationary pressures are still moderate, which slightly eases recent investor concerns about inflation. The 10-year bond yield has fallen to less than 1.54% over the past three days and is now trading at 1.544%. To a large extent, the yield curve will not reproduce the sharp rapid growth that was previously, which caused panic among cryptocurrency investors.
Bitcoin Price Analysis
Bitcoin’s bullish momentum is currently very strong. Yesterday’s highest price led to the fact that the cryptocurrency broke the psychological barrier of $ 58 thousand, soaring to $ 58,156 and approaching an all-time high of $ 58,354.
At the time of writing, the BTC trading price was approximately $ 56,772. 97. BTC is up 3.67% in the last 24 hours and 21.94% in the last seven days.
BTC has been trading above the 9-day moving average line for the past five days. Short-term moving averages are curved upwards, showing the location of bullish positions. This is a positive signal for the technical specialists of the market.
Bitcoin has successfully broken through the neck line of the inverted head and shoulder pattern. This proves that the Bitcoin market has returned to bull market mode and started a new round of growth. But there is a key attribute, which is that there is no indication that Bitcoin’s transaction volume will return to its previous high.
The blue MACD line crossed the yellow signal line from bottom to top, forming a golden intersection. The BTC / USD MACD is entering the bullish zone.
At the same time, yesterday’s trading volume decreased compared to the day before yesterday, which indicates that more bulls are hesitant to enter the market.
Thus, in the short term, BTC / USD will face strong resistance near the ATH of $ 58,354. If it can successfully break through this level, the bulls will target the next target position at the psychological 60K mark.
If BTC fails to move higher, a new downward correction may occur. The first major support is $ 53,000. The next important support level is near the $ 52,079 neck line. If the price falls below this critical level, the bears may push the price back into the bearish zone.