• 28 May, 2024

Bitcoin Hits 17-Month High: ETF Hype Fuels Market Optimism

In the world of cryptocurrency, Bitcoin’s recent performance has been nothing short of impressive. According to a tweet by CryptoBusy, an analyst, the  Law of time frame indicates that the 1D, 4HR, and 1HR charts are all signaling green. Additionally, technical indicators such as EMA 9, ALMA 20, and BB 50 are bullish on both the 1hr and 15 mins charts. Bitcoin’s positive momentum was further accentuated when it briefly surpassed the $35,000 mark on Wednesday. However, this surge was relatively short-lived.

The rapid descent in price that followed might have been triggered by sell orders, possibly from miners. Moreover, the significance of the $35,000 point cannot be understated; it’s viewed as a monthly resistance level. Consequently, market analysts suggest that Bitcoin might hover below this threshold for some time, indicating a potential period of consolidation. 

Moreover, Charles Edwards, founder of Capriole Investments, believes that despite this short-term consolidation, Bitcoin could aim for the $40,000-$45,000 range in the upcoming weeks. Additionally, the crypto giant reached around $35,000 on Monday, marking a 17-month high. This surge was driven by the anticipation of a spot Bitcoin exchange-traded fund (ETF) and other catalysts.

Currently, Bitcoin (BTC) is priced at $34,526.70, marking a 1.49% increase in the last 24 hours and a 22.48% surge over the past week. The 24-hour trading volume stands at $19.1B. Given its circulating supply of 20 Million BTC, the cryptocurrency has a market capitalization of $676.5B.

Furthermore, technical indicators provide an insightful perspective. The daily RSI, at 87.80, indicates Bitcoin is nearing the overbought territory. The EMAs, especially on shorter timeframes, show an upward trend. The 1-hour EMA stands at 34,675, the 4-hour at 34,341, and the daily at 31987. Additionally, the Bollinger bands on various timeframes suggest a potential resistance at the upper bands and support at the lower ones.

Source: TradingView

While Bitcoin’s current trend is bullish, it’s essential for investors to remain vigilant. The approaching overbought territory, as indicated by the RSI, might lead to short-term corrections. However, the overall sentiment remains positive, with the potential for further upward movement in the coming weeks.

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