Bitcoin hit its highest position in more than two years on February 26th, exceeding $57,000.
The cryptocurrency soared 9% to briefly reach $57,000 for the first time since November 2021, before dipping down to roughly $56,500. The increase is being driven by growing confidence about long-term investor demand for exchange-traded funds (ETFs).
During the day-long rise, Bitcoin first reached $53,000 before swiftly rising to $54,000, $56,000, and then $57,000.
Technical Perspective on Bitcoin
The CoinDCX Research Team shared their technical opinion on the BTC movement, saying, “BTC burst out of its range and demonstrated a parabolic spike. Currently, it is trading below the resistance level of $57,500. Similarly, ETH broke out of its range, retested, and is presently trading below the resistance level of $3,250.”
CoinSwitch Markets Desk commented on the rapid surge in Bitcoin price, stating, “BTC exhibited the largest one-day gain since pre-ETF days, and the rally continues today with an amazing double-digit gain. Bitcoin is currently approaching Rs 50 lakh per coin, with investors gaining confidence in the surge for the first time in two years. However, it is worth noting that the trek from $57,000 to $69,000 (the previous all-time high) will not be simple, as BTC will encounter several strong resistance areas along the way, beginning with $57,500.”
Rajagopal Menon, Vice President of WazirX, highlighted the significant momentum in Bitcoin ETF transaction volume, saying, “Bitcoin surged beyond $57,000 on Tuesday, marking its highest point since November 2021, extending gains from Monday’s US market. Despite a minor decrease to $56,500, it is up 9% in the previous 24 hours. Bitcoin breached key milestones on Monday, including $53,000, $54,000, $55,000, $56,000, and $57,000, resulting in heavy trading in US-based spot Bitcoin ETFs. The group’s trading volume, excluding Grayscale’s GBTC, reached $2.4 billion. GBTC saw the weakest one-day Bitcoin outflow since the ETF’s January 11 inception, losing just 921 tokens.”
Institutional Investment driving Bitcoin rally
Edul Patel, CEO of Mudrex, cited MicroStrategy’s increasing investment in Bitcoin as the driving cause behind the present market surge. Patel stated that “MicroStrategy’s acquisition of an additional 3,000 BTC for $155 million contributed to the optimistic market sentiment. The next level of resistance is $57,400, followed by $60,000. Ethereum, on the other hand, reached a two-year high, breaking beyond the $3,200 barrier, thanks to strong institutional demand. Overall, the market is positive ahead of the forthcoming Bitcoin halving.”
Shivam Thakral, CEO of BuyUcoin, stated, “Bitcoin has finally broken out after days of consolidation under its resistance. The cryptocurrency increased its market capitalization by $100 billion in a single day, surging more than 10%. This rise might have been spurred by institutional buying that anticipated this move in advance. MicroStrategy purchased 3,000 BTC yesterday, shortly before Bitcoin breached the resistance. Ethereum has also crossed $3,200 days after surpassing $3,000, potentially setting a new ATH if Bitcoin cools off.”
Vikram Subburaj, CEO of Giottus, shared the next resistance for Bitcoin: “Bitcoin’s open interest, currently at $24.9 billion, is now higher than the $24 billion high recorded in November 2021.” If the rally continues, the next important resistance level, $58,000, might signify a local top for Bitcoin. Solana and Cardano saw 7% rises today, while Ethereum is trading above $3,200. Key cryptocurrency upside objectives include Ethereum ($3,300), BNB ($420), Solana ($120), Cardano ($0.68), and Avalanche ($42).
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