4 Reasons Why Bitcoin Surged to $58,000
The Bitcoin price has shown green bullish candlesticks for 7 consecutive trading days. There are a few factors that have served to push Bitcoin's price higher.
The Senate has passed the 1.9 trillion US dollar stimulus plan with 50 votes in favour of it and 49 votes against it. U.S. President Biden signed the $1.9 trillion coronavirus relief bill on March 11, marking the official entry into force of the bill to provide fiscal stimulus relief to the U.S. economy.
According to data released by the U.S. Department of Labor on March 10, the Consumer Price Index (CPI) climbed from 262.231 to 263.161 in February, an increase of about 0.4% from the previous month, in line with economists' expectations. The inflation index failed to exceed expectations resulting in lowering the market's expectations of the Fed's interest rate hike.
Source:United States Consumer Price Index (CPI) via U.S. Bureau of Labor statistics
Due to the low increase in consumer prices in the United States in February, the selling pressure on US technology stocks has eased, and the Nasdaq Composite index has rebounded, rising from approximately 12,609 to 13,398 from March 8.
Inflation pressures are still moderate, which slightly eases investors’ recent concerns about inflation. The 10-year bond yield fell to less than 1.54% last three days and is now trading at 1.544%. To a large extent, the yield curve will not reproduce the sharp rapid rise it did before, which served to instill panic among cryptocurrency investors.
Source：US Government Bond 10 YR Yield via TradingView
Bitcoin(BTC) Price Analysis
Bitcoin's bullish momentum is currently very strong. Yesterday's highest price saw the cryptocurrency surpass the psychological barrier of 58K, soaring to $58,156 and approaching a record high of $58,354.
Source:BTC/USD Daily via TradingView
At the time of writing, the trading price of Bitcoin (BTC) is approximately $57,572.97. BTC has climbed 2.67% in the past 24 hours and 21.94% in the past seven days.
From daily candlesticks, BTC for the last five days all traded above the 9-day Moving Average line. The short-term moving averages are curved upward, showing bulls positions arrangements. This is a bullish signal for market technicians.
Bitcoin has successfully broken through the neckline position of the inverse head and shoulder pattern. It proves that the Bitcoin market has returned to the bull market mode and started a new round of increase. But there is a key attribute that there is no sign of Bitcoin's transaction volume returning to its previous high.
At the same time, yesterday's trading volume declined compared to the day before yesterday, proving that more bulls are hesitant to enter the market.
Therefore, BTC/USD will encounter strong resistance near the ATH of $58,354 in the short term. If it can successfully break through this level, the bulls will target the next target position at the psychological mark of 60k.
If BTC fails to move higher, a new downward correction may occur. The first major support is at $53,000. The next major support level is near the neckline of $52,079. If it breaks below this critical level, the bears may re-press the price back into the bearish inverse head and shoulder pattern.
The blue MACD line has crossed the yellow Signal line from bottom to top, forming a golden crossover. The MACD of BTC/USD is entering the bullish zone.
Image source: Shutterstock
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