Bitcoin touches two-year high

Most major cryptocurrencies have been on a bullish trend for the past few weeks. Bitcoin has crossed major resistance levels, as bulls are prevailing, reaching its highest level since December 2021. 

Bitcoin price skyrocketed on Monday, touching the $54,500 level for the first time since November 2021. If BTC price declines, support can be found at $50,600, while further resistance may be encountered near $55,000. 

Ethereum price also soared, breaking through the $3,000 resistance level over the weekend for the first time since April 2022 and touching $3,180 on Monday. If Ethereum's price declines, it may encounter support near $2,700, while if it increases, resistance may be encountered near $3,300.

Bitcoin is gaining strength as the Bitcoin halving event is approaching. Every halving event cuts the rate at which new bitcoins are released into circulation in half, increasing the scarcity value of Bitcoin. The halving is scheduled approximately every four years, and the next Bitcoin halving event is expected on April 17th raising the value of the cryptocurrency.

The approval of Bitcoin spot exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) caused cryptocurrency prices to surge over the past few weeks. The SEC finally approved 11 applications boosting Bitcoin price. 

Cryptocurrency prices are affected by central banks’ interest rates. High-interest rates are putting pressure on risk assets, while the promise of rate cuts boosts crypto markets. The Fed kept interest rates unchanged at its latest meeting, within a target range of 5.25% to 5.50%. The Fed, however, has removed the tightening bias from its policy statement, indicating that the central bank is preparing to pivot to a less restrictive monetary policy. 

Markets are under pressure by increased risk-aversion sentiment caused by rising geopolitical tensions. Concerns that the Geopolitical crisis in the Gaza area may spread to neighboring countries drive risk sentiment down putting pressure on risk assets. 

BTC/USD 1h Chart

ETH/USD 1hr Chart

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Written by:
Myrsini Giannouli

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