Tuesday marked a milestone for Bitcoin (BTC) as it rose by 1.44% and ended the day at $28,112 after trading above the $28,000 handle for three consecutive days. The news was well-received by crypto markets as XRP surged by 25.25%, its biggest single-day increase in some time.
The underlying sentiment driving such bullishness was twofold: firstly, recent filing in the SEC vs Ripple case provided a boost of confidence to investors; secondly, there were hopes of a post-March pause to assess the effects of interest rate hikes on the banking system, inflation and economy.
Looking ahead to upcoming developments, investors will want to keep their eyes glued to crypto news wires as regulators and lawmakers are expected to refocus their attention back to this sector soon after containing the banking crisis. For BTC to be able to sustain its current level of performance and break further resistance levels then it needs to ensure it stays above critical pivot points such as $27,953 and 50-day EMA ($26,363). If successful in doing so then it can target First Major Resistance Level (R1) at $28,594 followed by Second Major Resistance Level (R2) at $29,076.
This recent surge has once again demonstrated that cryptocurrency remains an attractive asset class despite economic downturns or geopolitical uncertainties. Millions of investors have adopted cryptocurrencies over the years in anticipation of strong returns which have been delivered more often than not with Bitcoin rising exponentially since last April when prices dropped below $4,000 per coin – what experts now refer to as “the great crypto dip”.
Additionally, governments are beginning to recognize cryptocurrencies such as Bitcoin and Ethereum as legitimate asset classes with countries like France creating regulations specifically tailored towards these digital assets. Such reasonable regulation is likely the key driver behind continued confidence from large institutional investors who have been entering into lucrative investment deals with large crypto exchanges or custodians over the past few months.
Overall this is an exciting period for those involved in cryptocurrency markets and developments over the next few weeks should provide hints as to whether this run will continue or suddenly end abruptly similar to other phases during Bitcoin’s volatile history. With current projections suggesting the price could rise to over $30,000 by mid-2021, Bitcoin bulls will be hoping for a smooth ride.
The crypto space has grown exponentially and with it so have the number of investors looking to get involved in the sector. As such, investors should continue to remain vigilant in researching every opportunity presented to them and make decisions based on their knowledge of the industry. Crypto markets remain unpredictable, yet at the same time, they can provide investors with lucrative returns if handled correctly.
Only time will tell where Bitcoin prices go from here but one thing is for sure; this sector continues to offer exciting prospects for those brave enough to take a chance. With this in mind, investors should remain on alert and use the time they have to carry out their research and make informed decisions before committing any funds. As always, it is best practice to diversify and invest responsibly.
