Bitcoin eyes 50K for the first time in two years

Most major cryptocurrencies have been on a bullish trend since last week. Bitcoin is in an uptrend, crossing major resistance levels, as bulls are prevailing.

Bitcoin price surged on Monday, overcoming the $49,000 barrier, and testing the $50,000 level resistance for the first time since December 2021. If BTC price declines, further support can be found at $41,800, while resistance may be encountered near $52,000. 

Ethereum also gained strength on Monday, climbing above the $2,600 level.  If Ethereum's price declines, it may encounter support near $2,230, while if it increases, resistance may be encountered near $2,700.

Bitcoin is gaining strength as the Bitcoin halving event is approaching. Every halving 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. The US and the UK have launched a coordinated action against Houthi rebels in Yemen. 

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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