The world’s largest cryptocurrency has undergone a significant drop from $73,290 to $60,700 between March 14, 2024, and March 20, 2024, prompting some to sell their holdings while others seized the opportunity to buy during the dip. However, on March 21, 2024, Bitcoin witnessed a notable price surge of over 8%, reaching the $67,000 milestone.
Reasons Behind Bitcoin’s Price Increase:
The recent surge in Bitcoin’s price over the last 24 hours can be attributed to several factors. On March 21, 2024, LookOnChain, an on-chain analytics firm, revealed on X (previously Twitter) that a crypto whale acquired over $294 million worth of BTC from Binance during this period. With Bitcoin’s price soaring to $67,000, this whale is currently enjoying a significant profit of over $3.35 million.
Additionally, another factor contributing to Bitcoin’s surge is the recent announcement by the US Federal Reserve maintaining its interest rate unchanged. The Federal Reserve’s decision to keep the interest rate steady at 5.25-5.50% marks the fifth consecutive meeting with no change.
Implications and Outlook:
The continuous accumulation of Bitcoin by whales and the unchanged interest rate announcement from the US Federal Reserve may attract more investors to the crypto market. As of now, Bitcoin is trading close to $67,250, experiencing a remarkable surge of over 8% in the last 24 hours. Despite a drop of over 8% in the past 7 days, Bitcoin has surged by over 30% in the last 30 days.
Bitcoin Technical Analysis and Key Levels:
Expert technical analysis suggests that Bitcoin narrowly avoided a major downturn, as the $60,000 level served as a robust demand zone and held the 200 EMA (exponential moving average). Had Bitcoin failed at this level on March 20, 2024, the current price surge might not have occurred.
Presently, Bitcoin is exhibiting bullish behavior, as it recently broke out of a trendline on the 4-hour timeframe, signaling optimism among traders. Projections suggest that Bitcoin could potentially reach levels of $69,000 and $73,300 in the near future. However, there are imminent challenges for Bitcoin at these levels. If Bitcoin successfully overcomes these hurdles, we could witness a new all-time high in the days ahead.
Not a financial advice.