All eyes in the cryptocurrency world are on Bitcoin because of its recent price surge. Bitcoin is currently trading at about $62,732 after breaking through the $60,000 resistance. This notable increase in volume indicates that investors, both institutional and retail, are becoming more interested and confident. This bullish trend is being driven by multiple factors.
First, a supply shock has driven up prices as a result of long-term investors and large corporations holding more Bitcoin, which is decreasing the available supply of the cryptocurrency. The general upbeat attitude on the cryptocurrency market has also aided in the ascent of Bitcoin. According to technical Analysis, Bitcoin has successfully broken through the 50 and 100 EMAs. The 200 EMA, or roughly $64,024, is the next significant resistance level.
If this barrier is broken, there is a chance that Bitcoin will soon test $70,000. Further bolstering the bullish argument for Bitcoin is on-chain data, which shows an increase in transaction volume and activity. With the Relative Strength Index (RSI) at 56 right now, there may still be more room for Bitcoin to rise before it enters overbought territory.
Still, prudence is advised, notwithstanding the optimism. Before the market makes a clear move, it may consolidate around the $65,000 mark, which is a major psychological barrier. To assess the strength of this uptrend, investors should keep a close eye on the volume and price action.
The trajectory of Bitcoin will also be greatly influenced by outside variables like macroeconomic events and news of regulation. Bitcoin may be able to maintain its upward momentum with the help of favorable regulatory developments and growing institutional adoption.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
