As the world of cryptocurrencies continues to grow, bitcoin price Trajectory remains a hot topic among investors and market analysts alike. With BTC bulls successfully defending the crucial $28,500 support level, speculation is rife regarding the possibility of an imminent breakout.
As traders keenly follow market trends and signals, the question of whether bitcoin will eventually break above its resistance levels and reach new highs becomes increasingly relevant.
This update explores the factors affecting bitcoin’s price, exploring potential scenarios and indicators that could ultimately shape its future trajectory.
Bitcoin’s correlation with gold strengthens: a multi-year high correlation emerges
As previously highlighted, bitcoin saw a remarkable increase of over 70% in the first quarter of 2023, outpacing the performance of other assets such as physical gold and US equities.
Bitcoin’s correlation with gold has hit a multi-year peak, now hovering around 50%, according to blockchain analytics firm Kaiko, which is higher than its correlation with US equities.
It is well known that both bitcoin and gold are regarded as safe-haven investments, typically sought by investors during times of economic uncertainty or turmoil.
However, bitcoin’s reputation as a reliable safe-haven asset was somewhat tarnished in 2022 after a significant crash in the cryptocurrency market.
In 2023, bitcoin and gold re-establish their status as safe-haven investments, largely due to revelations American banking crisis. As a result, both the assets saw substantial gains in March as investors sought safety amid the current uncertainty.
Broadly speaking, the appreciation in the prices of both gold and bitcoin can be attributed to factors such as a weak US currency, geopolitical tensions, the ongoing US banking crisis, and concerns over an impending US recession.
Meanwhile, lower-than-expected factory orders and a surprise decline in job openings in February indicate that the Federal Reserve’s tightening policy is hurting the economy. This development could ease the pressure on the Fed to hike interest rates during its meeting.
As a result, market participants have begun to speculate that the Fed may end its rate hike cycle and start cutting rates towards the end of the year, contributing to the upward momentum in bitcoin and gold.
Marathon Digital Announces Unprecedented Q1 Bitcoin Mining Achievements
mining company marathon digital announced An unprecedented 2,195 BTC were mined in the first quarter of 2023, worth over $62 million. This represents a substantial growth of over 70% over the prior year quarter and 40% growth over Q4 2022.
Marathon achieved this by increasing its operational hash rate by 195% since the beginning of Q1 2022 and deploying 25,900 bitcoin miners in North Dakota.
In addition, the company was able to reduce $50 billion in debt and repay its loan to Silvergate Bank. This achievement shows that bitcoin mining is still profitable and popular, which may increase investor confidence in BTC’s long-term prospects.
bitcoin price
Based on technical analysis, Bitcoin It is currently exhibiting a bearish trendline, likely facing resistance near the $28,900 mark. The technical outlook remains largely consistent, with bitcoin holding near the $27,900 price level.
If the BTC/USD pair manages to break the resistance level at $28,950, it could result in an appreciation in the value of bitcoin, potentially pushing the price towards $29,200 or even $30,700.
Conversely, should there be a downtrend, bitcoin price is expected to find strong support near the $26,600 and $25,200 levels.
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Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
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