How has Bitcoin risen to the level of $58,000?
Over the last seven trading days, the Bitcoin price has displayed bullish green candlesticks. There are various factors because of which the worth of Bitcoin has risen.
The Four Causes Of Bitcoin’s Surge
Here are the four reasons behind the Bitcoin risen into the market.
The First Cause:
The Senate approved the 1.9 trillion dollar stimulus bill with 50 votes in favor and 49 votes opposed. On March 11, Biden- US President signed the $1.9 trillion coronavirus relief bill into law, bringing the bill’s fiscal stimulus relief to the US economy into effect.
The Second Cause:
The Consumer Price Index or CPI rose 0.4% from 262.231 to 263.161 in February, according to data published by the United States Department of Labor on March 10. It was in line with economists’ estimates. The inflation index fell short of market forecasts, weakening market expectations for a Fed interest rate hike.
The Third Cause:
The selling pressure on US technology companies has eased due to the low rise in commodity prices in February. The Nasdaq Composite index has reflected, growing from about 12,609 to 13,398 since March 8.
The Fourth Causes:
Inflationary pressures remain mild, calming investors’ recent worries about inflation. The 10-year bond rate has dropped below 1.54% in the last three days and is now sitting at 1.544 percent. The yield curve would not, for the most part, recreate the sharp, fast increase it did previously, which created fear among cryptocurrency investors.
Price Analysis of the Bitcoin (BTC)
The bullish trend in Bitcoin is currently very high. The cryptocurrency broke through the psychological barrier of 58K yesterday, climbing to $58,156 and reaching a lifetime high of $58,354.
Bitcoin (BTC) is reportedly selling for about $57,572.97 at the time of publishing. BTC has progressed 2.67 % in the last 24 hours, and in the previous seven days, it has gained 21.94 percent.
According to daily candlesticks, BTC has traded above the 9-day Moving Average line for the last five days. Short-term moving averages are curved upward, suggesting favorable positions. It is a bullish signal for market technicians.
Bitcoin has effectively broken into the inverse head and shoulder pattern’s neckline location. It shows that the Bitcoin market has returned to a bull market and is now on the brink of a new growth round. However, there is one crucial feature: there is no indication that Bitcoin’s trading rate will return to its former high.
At the same time, trading activity yesterday was smaller than the day before, suggesting that more bulls are reluctant to enter the market.
As a result, in the short term, BTC/USD will face high resistance around the ATH of $58,354. If it can successfully break through this stage, the bulls can reach the psychological mark of 60k as the next goal position.
If BTC fails to move higher, a new downward correction can occur. $53,000 is the first significant support. The next big support stage is $52,079, which is near the neckline. The bears can re-press the price into a bearish inverse head and shoulder trend if it breaks below this critical amount.
The blue MACD line has crossed the yellow Signal line from bottom to top, creating a golden crossover. BTC/MACD USD has entered the bullish region.