Bitcoin Hits $31,000, What’s Next? – Bitcoin Weekly News
Bitcoin’s last week move was quite satisfying for most investors as it finally broke out of the 3-week long range and reached the $30,000 target that most traders were waiting for. However, a huge number of traders were waiting for a price drop toward the $26,000 level before hitting the target.
Only a few traders like Michael Van De Poppe had claimed that Bitcoin will reach the $30,000 target without dropping below. So, their Bitcoin price prediction finally became true. The following Bitcoin weekly news may share details about where Bitcoin’s price may head over the coming days.
Bitcoin Price Prediction by DonAlt
DonAlt, the trader who predicted the 2023 bull market, has now shared his analysis saying that Bitcoin will potentially hit the $50,000 mark during this year. However, he mentioned that Bitcoin is currently in an indecision phase and it needs to break out of the $33,000 resistance to continue the bull run.
He further added that the price will show a slight pullback after breaking the resistance. The $32,290 level will act as support once the price broke out of the resistance. However, the price may drop to the $19,500 support level if it failed to break the aforementioned resistance. The analyst has marked the $62,500 level as resistance after the breakout.
However, some experts are expecting a potential correction because the market is missing the mass bullishness it used to have during the previous bull runs.
The Macroeconomic Data Supports Bullish Sentiment About Bitcoin
Despite Macroeconomic headwinds, Bitcoin’s price rallied 10% in the last week after a 3-week-long consolidation. The US Dollar Index, on the other hand, has hit a 52-week low because investors are skeptical about further liquidity injections by the US Federal Reserve.
The reason why most investors are bullish about Bitcoin is that global macroeconomics has remained positive during the past months. Another major reason is that there’s no excessive leverage from longs in the derivatives market. The interesting part is that the sellers are currently reluctant to short Bitcoin which indicates that the price could quickly rally another 10% over the coming days.
The Crypto Market isn’t Taking Any Effect of Hawkish FED Comments
The global cryptocurrency market remains steady despite the hawkish comments of Federal Reserve officials about interest rate hikes. In fact, Bitcoin’s price further jumped when the Federal Reserve officials passed some comments about increasing interest rates.
The collapse of several US banks has urged many investors to invest a portion of their portfolio into Bitcoin. Similarly, investors are a bit worried about the expectations of a US recession. Therefore, they’re investing in Bitcoin and other risk assets that seem to be lucrative options in the current economic situation.
Investors are expecting another hike in the interest rate in May. Therefore, the experts think that it may further increase Bitcoin’s price over the next few weeks.
Ether Outshines Bitcoin
Michael Safai, the managing partner at Dexterity Capital, said during an interview that Bitcoin has gained investors’ confidence by offering ultimate stability during uncertain economic times. But he appreciated Ethereum’s performance saying that Ethereum is offering much better returns compared to Bitcoin.
Following Ethereum’s recent upgrade, most investors were expecting Ethereum’s price to decline. But Ethereum’s price started increasing because the stakers didn’t withdraw their holdings after the redemption. They’re just withdrawing their rewards to enjoy the profit.
So, Ethereum’s price can continue increasing better than Bitcoin’s. But Bitcoin will still remain a leading choice for most investors because it offers more stability compared to other cryptocurrencies.
Texas Senate has Passed a Bill to Limit the Involvement of Bitcoin Miners
Some Texas senate members have claimed that the demand response programs are a subsidy for Bitcoin miners. Therefore, they’ve passed a bill to limit their participation in these programs. The supporters, on the other hand, claim that miners’ flexibility in powering on and off is an asset to the Texas grid.
However, the bill is now heading to the House where it will be further discussed before being passed. Three lobbying firms consider it an anti-competitive bill. Therefore, they’ve already launched campaigns against the bill. Miner Marathon Digital believes that the bill will fail in the House.
Crypto Trading for Twitter Users
Elon Musk announced a few months ago that the Twitter team is working on integrating financial services into the platform. eToro, a social investing firm, has recently announced that they’re going to sign an agreement with Twitter so they can directly offer trading services for cryptocurrencies and other assets.
The platform will display real-time prices of the assets with the features that the users may use to invest in those assets with the help of eToro. An eToro spokesperson has stated that Twitter users will be able to access live price charts using this feature anywhere they want.
Conclusion
Bitcoin has reached the long-awaited $30,000 mark and has rallied 10% in the last week despite the hawkish comments by Federal Reserve officials about interest rate hikes. While some experts predict a potential correction due to the lack of mass bullishness in the market, others like DonAlt predict that Bitcoin may hit $50,000 this year after breaking the $33,000 resistance.
Moreover, the bullish sentiment about Bitcoin is supported by positive global macroeconomics and the absence of excessive leverage from longs in the derivatives market. If you need regular updates about Bitcoin and the crypto market, we invite you to subscribe to our weekly newsletter.