Looking to understand the future of Bitcoin prices? Find out why Bitcoin is putting pressure on resistance levels and what that means for its forecast. Stay informed with the latest insights on the cryptocurrency market.
Bitcoin has shown a slight rally in trading on Tuesday, with the potential for a breakout above the crucial $38,000 level. The cryptocurrency has been grinding higher over the last few weeks, indicating bullish momentum. However, markets do not move in one direction forever, and some consolidation may be necessary to work off the excess froth.
Looking ahead, the $35,000 level serves as a significant support area, with the 50-Day EMA also providing backup in case of a pullback. Traders are closely monitoring central bank policies, as any signs of monetary policy easing could benefit crypto and, specifically, bitcoin.
The 10-year yield in the United States can provide insight into market sentiment regarding central bank rhetoric. If investors believe that central banks will start loosening monetary policy, it could drive higher demand for crypto and ultimately boost bitcoin prices.
Additionally, discussions surrounding a potential ETF on Wall Street are another factor to watch. These developments, combined with a favorable economic environment, suggest that bitcoin has potential to move higher in the long-term, with a break towards the $40,000 level in sight.
However, a breakdown below $34,000 could cause concern in the short-term. Overall, the outlook for bitcoin remains positive, with plenty of reasons to believe in its upward trajectory. For a comprehensive overview of today’s economic events, explore our economic calendar.