Regional U.S. banks are showing signs of collapse, similar to last year's turmoil. After a month of stagnation, Bitcoin prices returned to $44,000. Investors see an opportunity, and some are expecting a $1 million price increase due to the aftermath of the financial crisis. Bitcoin and other altcoins have gained popularity due to the Chinese stock market decline and financial uncertainty.
Is Bitcoin entering a “pre-halving rally” a few days early? Find out.
Bitcoin price begins again
Bitcoin has risen to around $44,000 and Ethereum to around $2,400, with selling pressure easing ahead of the Bitcoin halving in April. Nevertheless, trend levels remain low compared to the previous month, suggesting remaining vigilant.
The overall crypto market is up about 2.3% in the last 24 hours. In addition to Bitcoin, other top altcoins such as Solana, Avalanche, Ethereum, BNB and Dogecoin also recorded gains between 1.7% and 3.4%.
Immediately following the surge, the crypto market saw major sell-offs totaling $102.94 million in 24 hours. Bitcoin and Ethereum were the most affected, with liquidations totaling $31.57 million and $18.34 million, respectively. These liquidations occur when traders' positions are automatically closed to prevent them from losing even more money if prices move against them.
Reason for the pull-up
However, the recent rise in Bitcoin prices to almost $44,000 may be related to several factors. While spot Bitcoin ETFs in particular drove prices higher last month, recent gains could also be influenced by expectations for spot Ethereum ETFs and spot Bitcoin ETF options. However, market gains of 2.3% in the last 24 hours are relatively modest, reflecting the uncertainty surrounding the approval of these products.
Spot Bitcoin ETFs have attracted significant investments, totaling $1.68 billion in inflows, according to Bloomberg ETF analyst James Seyffart. This figure takes into account outflows from Grayscale's Bitcoin Trust (GBTC). When Bitcoin is locked into ETF trusts, it can boost prices by increasing investor demand for the limited supply.
Arthur Hayes points out that the sudden collapse of the banking sector, illustrated by the NYCB bankruptcy news and shaken investor confidence in banks, is contributing to Bitcoin's rise as a safe-haven asset.
What next?
Technically, Bitcoin is currently trading above $44,000 and the 100-hour Simple Moving Average. If Bitcoin is rejected at $44,000, a major flush can be expected, but if it breaks out above $44,000 and consolidates, the next significant barrier will be at $45,000. A successful break above $45,000 could signal further upside and potentially target $45,750 as the next key level for bullish momentum. However, it is crucial for Bitcoin to overcome these resistance levels to stay on the uptrend.
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