Bitcoin selloff halted as bulls fight back

Bitcoin price started above the $71,000 level on Monday but plummeted to $65,000 on Tuesday as a bearish trend prevailed. Bulls fought back on Wednesday halting the Bitcoin selloff and raising its price to $66,000. If BTC price declines, support can be found near $66,200, while resistance may be encountered near $71,400. 

Ethereum also rallied on Wednesday, rising to the $3,340 level. If Ethereum's price declines, it may encounter support near $3,200, while if it increases, resistance may be encountered near $3,650.

Bitcoin price recently reached a new all-time high of $73,800. Bitcoin’s bullish run has renewed interest in crypto markets, boosting other cryptocurrencies as well. Bitcoin has encountered significant selling pressure as well, however, causing increased volatility as bulls wrestle with bears. 

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) has caused cryptocurrency prices to surge over the past few months. The SEC has approved 11 applications boosting Bitcoin price. Spot Bitcoin ETF demand has been on the rise, boosting the cryptocurrency as well.

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 US Federal Reserve kept interest rates unchanged at its latest policy meeting in March, within a target range of 5.25% to 5.50%. The Fed’s forward guidance was overall dovish, indicating that the Fed intends to proceed with cutting interest rates this year as planned, despite persistent inflationary pressures.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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