Namaste to all #hive and #inleo community members. 🙏
The world's oldest, largest, most popular, most reputed, and most trusted cryptocurrency 'Bitcoin' has once again made investors rich. It is trading at its highest in 18 months, up nearly 30% in the last 2 weeks. This is really a huge return. But do you know what is the reason behind this quick upmove?
The first thing that I myself have noticed is that Bitcoin is considered a good safeguard against inflation. Therefore, especially whenever there is a conflict between 2 nations in the world and the threat of geopolitical risk looms, we see a big rise in the price of Bitcoin.
A recent example was also seen during the Russia-Ukraine war, when huge buying was seen in Bitcoin from lower levels on 24 February 2022, the day the war started. This resulted in the formation of a long lower wick in the daily candle, which you can understand by looking at the image below.
After which, due to continuous strength in the next 1 month i.e. till 28 March 2022, its price increased by about 40 percent. Which you can understand by looking at the image below.
In the image shown above where 'The Low' is written, is the day of 24th February 2022, when the Russia-Ukrain War started. After which a continuous increase in prices was seen for the next one month. Whereas Bitcoin was in a continuous lower-low trend for 4 months before this up move. Which you can clearly see in the image shown below.
So unfortunately, It is true that conflicts and geopolitical tensions are one healthy sign for Bitcoin, but not for a long time as it starts falling after almost a month of movement, which you can understand yourself by looking at the historical data.
Let us now take a deep dive into the Bitcoin chart and see where it could be headed in the coming days.
Now with the tremendous buying of the last 2 weeks, Bitcoin has broken all the major resistances of the last one and a half years and has also sustained above. Another important point is that the reason for this continuous buying is not only the Israel-Hamas war but also the instability of the banking sector and the expectation of the launch of a Bitcoin ETF (exchange-traded fund)
Bitcoin's price began moving upward after news that BlackRock, the world's largest asset manager, was close to getting approval from the US Securities and Exchange Commission on its Bitcoin ETF application. This could be a really big development.
Now from a technical point of view, there is still no sign of weakness in the price action, However, some profit-booking is normal after such a big move, which is considered a healthy sign for continued strength.
But since #Bitcoin has broken all of its major resistances this week, I think the price holding here for a while will be a good sign for another big rally.
So on the lower side, 33700 and 33300 could act as immediate supports. After which 33000 will be a very important support level, not only technical but also psychological.
On the contrary, levels of 34500 and 35000 could act as important resistance. If the price sustain above the level of 35000 then another big move can be expected. After which the price can reach 37000 to 37500.
IMPORTANT: All my analyses are based on 4-hour to 1-day time frame charts. Hence please do not compare them with daily intraday price action.
My English is not very good so sometimes I use 'Google Translate'. Please don't think that anything I have written in this blog has been copied from somewhere or is AI-generated.