Post the psychological threshold of $31,000, Bitcoin has once again started showing a bearish trend and is trading below the $30K level. The world's largest cryptocurrency, BTC, which is on a recovery path has added a monthly gain of nearly 15%, according to the latest chart taken by #coinmarketcap then traded with a weekly loss of $29,230 of more than 2% at that time.
Bitcoin appears to be under little pressure as inflation continues to be an important issue in developing countries such as the US and UK, and as anticipated by the US Federal Reserve, it is raising interest rates by 25 basis points to address the inflation problem. According to experts, the major #resistensi is seen near the $29,800 level and the next major resistance is at the $30,400 level.
This is not the first time BTC has come under pressure. Bitcoin has experienced a major decline that pushed the cryptocurrency below $26,000, its lowest level in three months after the US Securities and Exchange Commission sued one of the world's leading cryptocurrency exchanges, Binance and its founder, Changpeng Zhao. (CZ). CEO-Binance
The SEC blamed crypto exchange Binance for creating separate entities such as Binance.com and Binance US, as part of an elaborate scheme to circumvent US federal securities laws. They also alleged that a company owned by its founder CZ, had been involved in artificially increasing the trading volume of crypto assets, which were listed on the Binance US platform.
Cryptocurrency experts believe that if BTC holds the $30,000 level, then it will likely bounce back from here, but breaking the level could definitely take it to a low of $28,000.
In April 2023, the top cryptocurrency Bitcoin touched major resistance at the $30,000 level, for the first time since June 10, 2022 and then started to decline down to the $26,000 level. Crypto experts believe Bitcoin will have to hold the $31,000 level or beyond to touch the $60,000 level by the end of 2023.
However, the recovery path is still long, as BTC is still down nearly 50% from its all-time high. At the start of the year, Bitcoin plummeted below the $20,000 level. However, factors such as the worsening banking crisis in the US, weakening of the dollar index, and declining inflation have brought Bitcoin and other digital currencies back into the lead of resistance. So, it wouldn't be wrong to say that the recent US financial crisis has increased interest in cryptocurrencies.
Although the future of Bitcoin is unknown, retail investors should be extremely careful about any Bitcoin moves, as it has been a tumultuous year for Bitcoin and Altcoins. Bitcoiners should not lose sight of the fact that the currency is still trading lower at nearly 50% of its all-time high. The reason behind this volatility can be attributed to the macroeconomic conditions in developed countries including the United States and the United Kingdom.
Additionally, India's stance on cryptocurrencies remains firm with the government bringing all cryptocurrency-related transactions under the Money Laundering Act. In a specific gazette notification, the Union Ministry of Finance of India stated that all transactions related to digital assets or virtual currencies will come under the ambit of the Prevention of Money Laundering Act (PMLA).
At first glance, this new development may seem detrimental to the cryptocurrency community in especially India. But in the field, this step was widely praised by the industry because it was a step towards regulation, where if there was no regulator, law enforcement agencies would immediately take the solution if there was a difference.
One other reason why crypto experts have pinned their hopes on Bitcoin is because, in 2024, it will be the year of the Bitcoin halving. Bitcoin halving events occur every four years where BTC rewards to miners are cut by 50%, (miner payouts will be reduced to 3,125 BTC). These events are usually seen as positive for Bitcoin prices, as they help reduce supply. Historically, halvings are seen as a good sign to bring momentum to the price of Bitcoin
Nikita Tambe
Forbes Staff
This article was loaded from forbes.com
