Bitcoin struggling to break key price resistance

Important facts:
  • The day started with huge fluctuations in the price of Bitcoin.

  • In the medium and long term, an upward trend seems inevitable for Bitcoin.

This Sunday, March 10, is being marked by volatility for Bitcoin (BTC). At the time of this publication, the digital currency is apparently In the “battle” to break the $70,000 mark.

This is a key price for BTC, around the same figure (it may be more or less depending on the exchange where its price is viewed) The current historical maximum price was reached last Friday, March 8,

The following graph provided by TradingView allows you to appreciate the activity of BTC over the last 3 days:

Bitcoin price with 5 minute candles on Binance exchange. Source: TradingView.

As Cryptonoticius explained, Spot Bitcoin ETF has been an excellent performer in the US market Increases demand for the asset. Furthermore, financial giant BlackRock recently filed a request with the Securities and Exchange Commission (SEC) to include these ETFs (even the ones they manage) in any other investment fund. If this were approved, a virtuous cycle would occur that would potentially lead to increased BTC purchases.

Today’s bullish momentum is interesting because it is Sunday, a day when traditional financial markets do not operate (although Bitcoin and all cryptocurrencies do). A few weeks ago a report from Kaiko company revealed that Bitcoin volume drops significantly over the weekendAnd this is indicative of the large presence of institutional investors in this market.

Now this is not happening, there may be proof of this Retail investors are again turning their attention to BTC in a big way, Google searches for the term “Bitcoin”, which have returned to 2020 levels, are an argument in favor of this thesis.

Why is $70,000 a key price for Bitcoin?

Cryptopedia (the educational section of Cryptonauts) explains that resistance is a price mark at which a financial asset (Bitcoin in this case) shows difficulty in crossing it to the upside. In general, values ​​that have served as resistance in the past act the same once again in the future. $70,000 is also a round number, which gives more strength to resistance due to market psychology.

it means that There is a high probability that Bitcoin will bounce back or, at the very least, get sideways from these prices At this price for several hours or days.

Anyway, there is a strong possibility that something will happen This does not mean that it is guaranteed to do so., If buying pressure exceeds selling pressure this Sunday, according to the simple law of supply and demand, the price of BTC will rise.

A bull run is inevitable for Bitcoin

If we look at the long and medium term, a bullish trend in Bitcoin seems inevitable, The ETF continues to break records in trading volume and assets under management and this includes the proximity of the halving scheduled for April this year. This is the event that halves the rewards for Bitcoin mining every 4 years.

Historically, halvings act as an upward catalyst for the asset’s price because, in addition to reducing issuance, it reminds the market in general that Bitcoin is a scarce asset and difficult to obtain. Will go.

CoinShares, an investment company, refers to the Bitcoin halving as:

“Every milestone is a great marketing event. “This brings renewed and immediate attention back to Bitcoin, acting as a shot of adrenaline into the market.”

CoinShares, investment company.

CoinShares details that “whenever the halving comes, the media seizes upon it with eternal fascination, shining a renewed light on Bitcoin in traditional media. At this point, people who first heard about Bitcoin in the previous bullish Had heard of it, but had assumed it was dead, they will discover that it is actually fine and performs much better than they imagined.

There’s more to all of this and more (like technological advances, Lightning Network adoption, and more), Bitcoin promises to rise in the coming months, In this context, creating a proper investment strategy can be beneficial.

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(TagstoTranslate)Bitcoin (BTC)(T)Cryptocurrency(T)Relevant Prices and Trading(T)

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