Communications

Volatility is back for Bitcoin and the entire cryptocurrency market. The Iranian offensive against Israel led to a sudden drop in prices over the weekend. The strength of the US dollar, the weakness of the stock market, pre-halving forecasts, still strong outflows from Grayscale’s ETF, and the acceptance of a BTC and ETH ETF in Hong Kong have all influenced market action. Let’s delve into this.

After a difficult start to April, the cryptocurrency market strongly rebounded over the last weekend before falling back into its current consolidation channel. Ultimately, the week has still been positive for Bitcoin. At the time of writing, it is the inflation data in the United States holding investors’ breath. These data, published at 8:30 am this Wednesday morning, may dictate the short-term price direction.

After painting a seventh consecutive month in the green, a record in Bitcoin’s history, the markets opened April with a slight correction. This turbulent period coincides with a rise in the U.S. dollar index, which reached its highest level of the year, signaling a strengthening of the dollar against other major currencies.

As we are now less than a month away from the next bitcoin halving, the price has rebounded significantly over the past seven days. At the time of writing, the struggle continues to stay north of $70,000. The rebound observed allows for an enviable technical portrait where a test of the record highs from two weeks ago seems plausible in the short term.

What a week can bring in the world of cryptocurrencies. Certainly, the inherent volatility is back. Bitcoin experienced a significant drop, marking its largest daily decline since the FTX exchange bankruptcy in November 2022.

It’s now as clear as it can be! Bitcoin has officially surpassed its all-time high and is now trading well above $70,000. We are entering the most exciting phase of any market, which is the price discovery phase with no past resistance existing.

For just a minute yesterday, Bitcoin traded above $69,000, setting a new all-time high. However, this milestone triggered a massive profit-taking wave, leading to a series of liquidations. Just a few hours later, its value had dropped by up to 15%, temporarily falling below $60,000. This kind of volatility is characteristic of Bitcoin and has not been observed for a long time. Those who panicked and sold are probably regretting their decision now

Real fireworks! Bitcoin experienced a sharp increase, surpassing $59,000 during the early hours of this Wednesday, with a 5% increase over the last 24 hours, thus reaching a market capitalization of $1.2 trillion. This significant rise comes as exchange-traded funds linked to Bitcoin recorded more than $3 billion in cumulative transaction volumes on Tuesday, thereby fueling demand.