Investing.com – “Since last September, the price of Bitcoin has risen by more than 50% to $38,000 as demand became strong at around $25,000, a level that has acted as a support for us. Another of the conditioning factors has been the pause in interest rates in the United States, as well as the possible rate ceiling in 2024”. This is how categorical Diego Morín, an analyst at IG, is in his outlook for the world’s largest cryptocurrency.
“The problems of states with exorbitant levels of debt have caused many investors to take positions in the cryptocurrency market, bringing BTC back into play, as for many traders it is considered a “safe haven” security. However, investors are exposed to moments of high volatility, which makes Bitcoin a risky asset”, adds Morín.
According to this expert, “a new scenario has opened up for the cryptocurrency market with the involvement of BlackRock (NYSE:BLK) in its commitment to create a Bitcoin ETF, pending the decision of the US SEC, which was joined by other funds such as Grayscale and VanEck. Therefore, if the ETF is approved, many investors begin to speculate that the main cryptocurrency will soar to new highs, not to mention Halving in April 2024.
h2 Technical analysis/h2
Morin notes that “BTC’s price structure has not changed, as demand (buying) sustained the $25,000 support, an important area in recent months. This same level was key last June, when the market rebounded strongly and managed to recapture the $30,000 level”.
“Likewise, the price of BTC broke the 161.80% Fibonacci retracement level last October, taking as a reference the starting point from November last year, which resulted in the return towards $35,000, an area that it has been able to sustain in recent weeks,” says the IG analyst.
“Finally, Bitcoin is trading within an ascending channel, creating rising lows and, for the moment, holding the $35,000 support, with its sights set on the psychological resistance of $40,000, a price it has not visited since last April 2022,” concludes Morin.
Translated from Spanish using DeepL.
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