Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, has experienced a volatile market over the past few days, with its price fluctuating between highs and lows. However, BTC has recently bounced back from a major trend line at $27,000 and is currently trading at $29,600, representing a profit of over 8% in the last 24 hours.
This latest surge in BTC’s price comes after the collapse of a major US bank, First Republic Bank. The news of this collapse may have contributed to the uptick in BTC’s price, as investors seek alternative investment options after the bank’s failure.
Another Bank Failure Tied To BTC’s Price Surge
Theto the trader and analyst, who goes by the pseudonym “CJ,” has identified what they believe to be the current parameters for the market. According to CJ, if Bitcoin’s price closes above 30k and the US dollar index (DXY) breaks to a range of 97-100, the market will likely reach the 33k liquidity level. However, if Bitcoin’s price rejects this level and closes below 29250, it could be a bearish re-test.
It is worth noting that Bitcoin has recently bounced from a key pivotal support level of $27,000, which is good news for bulls in the short term. However, the market is still uncertain whether Bitcoin will break above the $30,000 resistance again or experience another slump.
On the other hand, the recent bank failure, as described by Nick Gerli, CEO and Founder of Reventure Consulting, has highlighted the potential risks associated with traditional banking and finance. This has led investors to question the stability of the traditional financial system and seek alternative options.
On the contrary to this situation, Bitcoin has been on the rise since the beginning of 2023, and some analysts believe that the current economic climate could be a contributing factor. The recent contraction in the money supply in the US has led to a decrease in available capital, which could lead investors to seek alternative investment options.
With its decentralized nature and limited supply, Bitcoin has become an attractive option for investors looking to diversify their portfolios. Furthermore, Bitcoin’s recent price uptick can be attributed to several factors, including increased institutional adoption and growing mainstream acceptance. However, the current economic climate has undoubtedly played a role in Bitcoin’s recent surge in value.
As the economic outlook remains uncertain, many investors turn to Bitcoin as a safe haven asset. The cryptocurrency has been touted as a hedge against inflation and economic instability, and its recent price uptick could reflect these beliefs.
Bitcoin Highs Already Made For The Year?
The Puell Multiple, a metric used by cryptocurrency traders and analysts to gauge the value of Bitcoin, has recently made a perfect retest of its uptrend, according to CryptoCon, a trader and analyst of the crypto market. This retest suggests that the upward trend of Bitcoin remains intact and could potentially lead to much higher valuations in the future.
The Puell Multiple is calculated by dividing the daily issuance value of Bitcoin by the 365-day moving average of the daily issuance value. It is a useful metric for understanding the current state of Bitcoin’s mining ecosystem and can provide insights into the potential future direction of Bitcoin’s price.
With the Puell Multiple’s recent retests of its uptrend, CryptoCon suggests that the upward momentum of Bitcoin remains strong and could lead to even higher valuations in the future. This is welcome news for bulls eagerly anticipating a continued rise in Bitcoin’s price.
Featured image from Unsplash, chart from TradingView.com