When this article was prepared, the king of cryptocurrencies, Bitcoin, has surpassed $43,000 and is currently trading above $43,150. While the expected volatility in altcoins has not yet begun, experienced investors know that such rapid rises often come to an end. So what is the reason behind this rise?
Why is Bitcoin Rising?
We will witness ETF approvals, halving, and interest rate cuts in 2024, and today we saw that the US JOLTS data was positive for the risk markets. The price of BTC is observing the success of the Fed’s fight against inflation due to weakening employment. With inflation and wage increases decreasing and employment weakening, there should be nothing left on the macro front to suppress the risk markets.
Cryptocurrencies move differently from other assets, just as they suddenly lost thousands of dollars during the 2022 downturn, now the opposite is happening. Just as supports were lost after several tests, now resistances are being overcome in the opposite way. For those who have made efforts to understand the structure of cryptocurrency markets in the last 2 years, today’s movements are not surprising, but those who enter this field by hearing about cryptocurrencies in the coming year will be in for big surprises if the 4-year cycles continue.
Bitcoin’s price has a resistance at $48,000 against its current level above $42,000. Buyers dominate until $41,300 as a support level.
