Bitcoin (BTC) prices soared above $31,400 on Friday, reaching its highest level since 2022, following growing institutional interest in the first cryptocurrency.
Bitcoin briefly rebounded, but was able to maintain trading volumes above $30,000 for the first time since April. This price level will prove to be a major resistance point throughout 2023.
The recent rally faces uncertainty about the sustainability of the rally, even though it has risen more than 85% in value this year. The market as a whole grapples with regulatory concerns and macroeconomic factors that contribute to pervasive uncertainty.
In this line, cryptocurrency trading expert and analyst Michael van de Poppe expressed doubts about the cryptocurrency’s ability to sustain an uptrend in this situation. Tweet However, if Bitcoin experiences a slight correction to around $28,500, it will be an ideal opportunity to accumulate wealth, he noted.
“Bitcoin has hit a fantastic high and has swept all-year highs. Whether or not it will continue to rise from here is unknown, but it is possible that during an uptrend the price will continue to rise rather than undergo a significant correction. If there is a fix, I will buy $28,500,” he said.
Institutional Interest Boosts Bitcoin Value
The current surge in Bitcoin’s value is likely due to growing interest from major financial institutions. In particular, BlackRock (NYSE: BLK), the world’s largest investment management company, recently applied for registration of a Bitcoin Spot Exchange Traded Fund (ETF).
Additionally, this week witnessed the launch of a digital asset trading platform by EDX Markets, a cryptocurrency exchange backed by big names such as Charles Schwab, Fidelity Digital Assets and Citadel.
These efforts have come as the Securities and Exchange Commission (SEC) tightens its regulatory crackdown over alleged listings of unregistered securities on cryptocurrency exchanges such as Binance and Coinbase. Instilled investor confidence.
Bitcoin price analysis
In terms of Bitcoin price analysis, at the moment it is trading comfortably above the $30,000 resistance level with a valuation of $30,621. On the weekly chart, Bitcoin posted a gain of over 15%.
Also, Bitcoin 1 day technical analysis, TradingView showing a bullish trend. The gauge summarizes ‘buy’ sentiment at 14 and the moving average at 13 suggesting a ‘strong buy’. The oscillator remains neutral with a sentiment score of 8.
Despite significant growth this year, Bitcoin still falls short of the all-time high of $60,000 and above reached in 2021.
Cryptocurrencies faced significant challenges last year with the Federal Reserve’s quick interest rate adjustment and the collapse of crypto exchange FTX. These events caused widespread declines in the cryptocurrency market, thus impacting the value of Bitcoin.
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