The Crypto Market Is Making A Comeback. Bitcoin Is Poised To Reach $36,000 In The Near Future

There was an increase in Bitcoin prices Wednesday, rebounding from another selloff occurred earlier this week amid regulatory pressures on Binance, which has had a significant impact on the cryptocurrency industry, and resuming a bullish streak that dominated trading for most of the year.

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Over the past 24 hours, bitcoin has gained 5% to $28,400, the first level reached in the crypto market since June 2022. When the crypto crash intensified along with a string of business failures across the sector, that level was reached last week for the first time since then. As the rally picked up steam in March, the largest crypto has grown by about 70 percent this year, rising from just under $16,000 at the beginning of January, and rising to just over $24,000 in March alone.

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According to Susannah Streeter, an analyst at Hargreaves Lansdown, investors are becoming more willing to take on a bit more risk. Despite the fact that there are growing expectations that the Federal Reserve will hike interest rates again at the next meeting, it is still widely believed that we are at the peak of interest rates, especially as the banking sector continues to tighten, which will negatively affect the economy.

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As a matter of fact, Bitcoin has outperformed both the Dow Jones Industrial Average and the S&P 500 in recent weeks due to expectations that the Federal Reserve will become more accommodative with its monetary policy in order to boost its economic growth. Over the past year, interest rates have increased, which has harmed demand for risky assets such as stocks and cryptocurrency. However, traders now hope that this inflation-fighting campaign is over.

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There will be a continued emphasis on macroeconomic factors that will drive Bitcoin's price, with the next major catalyst coming on Friday, when the Personal Consumption Expenditures (PCE) index for February will be released by the Federal Reserve.

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As the crypto markets and companies have come under increasingly negative regulatory scrutiny, digital assets have proven to be a leading barometer of risk sentiment in wider markets, marching higher while other asset classes have remained static or even declined.

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Bitcoin prices started falling earlier this week after it was reported that the Commodity Futures Trading Commission had filed a suit against Binance, one of the world's largest crypto exchanges. However, crypto traders have gained confidence in the market since those fears were quashed about as quickly as they emerged.

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However, the regulatory landscape is still unclear, so traders will continue to take cues from macroeconomic trends over the next few months. As a result, Bitcoin may be able to top the psychologically significant $30,000. This is a level that hasn’t been attainable since last summer when the bear market was becoming increasingly ferocious, and there is a possibility that it will reach even higher price levels.

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Several months ago, Bitcoin was facing strong resistance around $25,200, but now it has broken out of it, suggesting a base has formed around that level, according to Katie Stockton, managing partner at Fairlead Strategies. She also added that Bitcoin is currently facing strong support around $25,000, which suggests a base may now be in place.

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“Our weekly indicators are higher, indicating a bullish intermediate-term bias,” Stockton said. As Bitcoin traded closer to $27,000 on Monday, Fairlead released an analysis that suggests that the price is approaching an initial resistance level of $28,100, which Stockton is eyeing as a key target for prices. However, now that the price has passed that level, the next target may be in sight.

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The secondary resistance level is near $35,900, rather than the $40,600 level, according to Stockton. “Long-term momentum has shifted towards Bitcoin, which is seen as the leader of the crypto market on a broader scale.”

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There were many other cryptocurrencies that also had a good day. The second-largest cryptocurrency, EtherETHUSD +1.87%, rose 5% to $1,825. A variety of smaller cryptocurrencies or altcoins soared, including Cardano racking up 9%, Polygon MATICUSD +2.79% and Cardano raging up 7% as well. Dogecoin DOGEUSD +2.61% and Shiba InuSHIBUSD +2.49%, both of which were up 4%.