Bitcoin surges back to 43K: Is this the crypto breakout?

Posted: 1 March 2022 3:23 pm
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Bitcoin led the way higher on Monday — but $45,000 is still a strong resistance level to watch.

Bitcoin surged back above $43,000 and up 15% on Monday, while popular altcoins moved up in double digits. Ethereum (ETH) tagged along with a 12% gain, while Terra (LUNA) gained 26% during the time, outperforming the top 10 altcoins by market cap.

Is this the crypto breakout?

Bitcoin stuck in a price range for a while

Since January this year, Bitcoin has been trading in the range between $35,000 and $45,000. The move above $43,000 on Monday gets the price closer to the $45,000 resistance level. This means traders await at these prices to sell — or short — Bitcoin.

If sellers outweigh buyers, the price moves back down to another price level where the majority wants to buy Bitcoin.

To test the all-time highs of November 2021, Bitcoin has to break the $45,000 level and hold above it.

Bitcoin is still seen as a bargain at these levels

Bloomberg Intelligence recently released a report where they expect to see Bitcoin at $100,000 in 2022. Cathie Wood’s ARK analysts predict Bitcoin’s worth to be $1M by 2030. If these predictions turn out to be true, current prices of $43,000 per Bitcoin could be seen as a bargain.

Why it surged on Monday

There are several reasons why Bitcoin and the altcoins surged:

  1. Some reports claim there’s an increased Russian ruble-Bitcoin transaction volume after Western countries imposed sanctions on Russia. Since Russians are barred from accessing foreign currencies and as their own currency loses value, it may turn to Bitcoin for international transfers or as a store-of-value.
  2. Another reason is that people who want to donate to Ukirane are converting fiat currencies to cryptocurrencies.
  3. eBay’s CEO Jamie Iannone recently announced that the company will soon accept crypto payments. As more companies accept crypto payments, the wider adoption will mean more demand, so it will increase cryptocurrency prices.
  4. State Street, a Boston-based bank with $43 trillion in assets, announced recently that it’s working with US regulators to roll out cryptocurrency custodial services. This comes after JP Morgan reported that more than 300 US banks are looking to roll out Bitcoin trading on their mobile apps.

Key levels to watch

Investors looking to buy cryptocurrencies should watch Bitcoin and its move above $45,000. It must hold above the price to confirm a potential move to $50,000. Altcoins typically follow Bitcoin’s moves.

A bounce-off of the $45,000 level means Bitcoin could retest the $35,000 level. If you’re long-term bullish on Bitcoin, this could present a solid buying opportunity.

Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.

Kliment Dukovski owns Bitcoin, Ether and Luna as of the publishing date.

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