February 28, 2024
Bitcoin Breaks $60,000!
Dear Subscriber,
 |
| By Beth Canova |
Bitcoin (BTC, “A-”) is on a bender!
Record inflows into newborn spot ETFs and surging open interest on Bitcoin have fueled the price rally of BTC to over $60,000.
Last week, Bitcoin underwent a correction to $50,500 before resuming its rally.
Today, it surged above $60,000 in a breathtaking run, captivating market watchers worldwide:
After gaining around 16% in just a week, Bitcoin has now paved the way to target its next resistance level at $63,000, signaling renewed bullish momentum in the market.
As I was writing this piece, BTC actually pushed past $63,000 to almost touch $64,000! It has naturally since pulled back but is still above $60,000.
We’ll have to wait to see if it can hold above there with confidence. For confirmation, BTC will need to close above $60,000 several times in the coming days.
And if it can? Well, with key resistance levels broken, there’s very little standing in the way of new all-time highs.
As a reminder, BTC’s current all-time high is $69,044.77, made in November 2021.
Usually, we wouldn’t expect to see BTC look to make a new all-time high until after the Bitcoin halving event, which is scheduled for April of this year.
Of course, BTC can still correct between now and then. In fact, our team is looking for it to do just that.
It may seem counterintuitive, but that would be a bullish move.
That’s because if BTC falls enough to retest support at $57,000, that would give it a stronger foundation to rally from when it’s ready to target its ATH.
But still, just the fact that BTC is this close to its ATH this early in our bull market is very bullish.
Just as interesting is where this bullish momentum is coming from … and where it isn’t.
See, most of this push is being driven by institutional investors.
Now, an increase in institutional interest was anticipated following the approval of the spot Bitcoin ETFs.
But we’re getting a front row seat to just how powerful a market force this interest is.
As institutional liquidity continues to flow into the market, driving prices upward, the dynamics are straightforward: increased demand leads to higher valuations.
And this is starkly clear because of what is notably absent from this rally: retail investors.
Traditionally, retail investors lead the charge in the early months of a bull market, with institutional interest usually only coming into the picture after the broad market has rallied for a bit.
But this go-around, it’s the opposite. Indeed, many retail investors seem hesitant to fully embrace the current bullish trend.
And that’s exciting to me for two reasons:
- Their reluctance hasn’t prevented Bitcoin from rushing closer to its all-time high.
- If Bitcoin continues its strong momentum fueled by institutional liquidity, we could see retail investors get hit with FOMO — fear of missing out. This could potentially lead to a rush to buy at the peak, as mainstream media coverage intensifies.
Already, retail investor activity has started to pick up. But we’re not seeing the wave we usually do from this group.
Yet.
I believe it’s only a matter of time. And when retail investors do make their appearance, it’ll push Bitcoin even higher.
But BTC isn’t the only impressive asset in the market. Ethereum (ETH, “B”) is also moving up and looking higher.
After finally breaching the $2,900 barrier for the first time in almost two years, ETH pushed further to reach $3,300 in a matter of days:
The next significant target sits at $3,600, and ETH seems to be confidently headed there.
And remember that the price of ETH/BTC is expected to break out from its 7-year-old triangle pattern at some point this year:
Such a breakout is anticipated to trigger a significant price surge for ETH and altcoins. Our team believes ETH will likely break out near the deadline for ETH spot ETF approval.
Meaning yet another convergence of bullish events may be in store for investors.
Because when ETH does break out, we are going to see major action that will permeate the broad crypto market.
On a final note, I just want to bring your attention to Coinbase (COIN).
The largest centralized crypto exchange in North America, Coinbase is often new users’ first stop in their crypto journey.
But earlier today, the CEX was having technical difficulties, with some users’ account balances showing nothing but zeros.
According to Coinbase, this is a glitch and all users’ assets are safe.
While that’s good news, it certainly doesn’t erase the panic those investors must have felt when seeing their account balance at zero!
This is a good opportunity to remind you that, like any centralized platform, Coinbase is still susceptible to glitches, crashes and attacks that can impact every user.
And even a snafu like this one — where there is no ill intent — can still shake an investor.
One way to insulate yourself from situations like this is to use a self-custody wallet for your crypto.
This ensures you maintain control of your own assets at all times, and nothing that happens on the centralized platform can impact your balance.
I wrote a more about wallets — including how to set one up for yourself — in this previous Weiss Crypto Daily.
And if you’re looking for even more security, I suggest you read my piece on hard wallets, as well.
Look, crypto is a crazy market. And the twists and turns of volatility can spread through it like wildfire.
As we continue through this bull market, taking steps like setting up a self-custody wallet are small ways you can help protect yourself.
Because you certainly don’t want fear to keep you out of this game.
This bull cycle is throwing us a few new curve balls, but everything we’re seeing still promises a wild bull ride.
Hold on tight and keep checking back in here for your daily crypto updates.
Best,
Beth Canova
Tidak ada komentar:
Posting Komentar