Bitcoin bulls attempt to break through $44,000 barrier

Bitcoin price remained strong on Thursday, testing the $44,000 level resistance for the second day. Bulls attempted to break through from the key $44,000 level without managing to overcome this barrier. If the BTC price declines, support can be found near $40,000, while resistance may be encountered near $45,000. 

Ethereum price edged higher on Thursday, touching the $2,260 level. If Ethereum's price declines, it may encounter support near $2,120, while if it increases, resistance may be encountered near $2,330.

Crypto markets have been under pressure this week by rising geopolitical tensions. The war between Israel and Hamas is threatening to spill over the Middle East as tensions rise in the Red Sea area. Risk A risk aversion sentiment prevailed on Tuesday on concerns that the Geopolitical crisis in the Gaza area may spread to neighboring countries and risk assets sank.

Crypto markets have gained strength in anticipation of the approval of crypto spot exchange-traded funds (ETF). Approval expectations of spot ETFs by the Securities and Exchange Commission (SEC) are boosting crypto markets. BlackRock and other institutions have applied for a Bitcoin ETF, which would bring more institutional and retail money into crypto markets. The SEC has been hesitant regarding the future of Bitcoin ETFs, delaying the decision. BlackRock has also filed an ETH spot ETF for approval, causing Ethereum prices to surge. Reports that a date has been set for Bitcoin spot ETF approval between January 5 to January 10 are driving Bitcoin price up. 

Increases in central banks’ interest rates are putting pressure on risk assets. Most major central banks, however, are hitting pause on rate hikes, propping up crypto markets. The Fed kept interest rates unchanged at its December meeting, within a target range of 5.25% to 5.50%. The Fed’s forward guidance was more dovish than expected, hinting that the central bank is preparing to pivot to a less restrictive monetary policy. Markets are currently pricing in a 25 bp rate cut in March with over 60% probability, propping up risk assets.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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