Cryptocurrency markets have been increasingly bullish in the past seven days. Bitcoin’s price rallied from a low of $19k to over $23k in a few days, with a steady increase in trading volume and market momentum. While stocks and futures experience little changes this week, Bitcoin and Ethereum have increased significantly, with BTC rising by 23% and ETH increasing by 55% in the past seven days. Is a market reversal finally here? Will BTC reach $30k soon? Let’s find out.
Key Points:
- News of a less aggressive Fed hike keeps stock markets healthy, contributing to BTC’s bullish momentum,
- Upcoming sell pressure from miners may slow down BTC’s rally.
- Ethereum is leading the bull market with its “merge trade.”
- Earnings season could positively impact stocks and crypto assets in the next few weeks.
Bitcoin Price Analysis – BTC Up Over $23.6K
After hovering at the $22k level last night, Bitcoin registered a significant bull rally, peaking at a high of $23.6k. The cryptocurrency is currently attempting to establish support at the $23k level, possibly attempting to breach the $27k resistance line.
The global cryptocurrency market is safely above the $1 trillion market cap range, with a current valuation of $1.07 trillion, rising by over 4% in the past 24 hours.
One likely reason for the high performance of Bitcoin today is news about the Fed planning to increase interest rates by 75 basis points rather than the rumored 100 points. A less aggressive rate hike by the Federal Reserve means stocks will likely not be impacted as much in the coming weeks.
Since Bitcoin’s price closely follows the stock market, if traders don’t expect a substantial correction in global markets, Bitcoin is likely to continue with its bullish rally. A softer action by the Fed means more confidence in stocks, futures, and cryptocurrency.
While the recent price hike for Bitcoin is promising, significant selling pressure might loom. On-chain analysis from CryptoQuant revealed that over $300 million worth of Bitcoin were transferred out of miner wallets, which could be preparing to offload their earnings on exchanges.
At the same time, while $300 million of selling pressure does seem significant, Bitcoin’s 24-hour trading volume recently surpassed $50 billion, with Binance accounting for over $8 billion, followed by FTX’s $1 billion and Coinbase’s $806 million. While an additional $300 million would be noticeable, it wouldn’t create as much of an effect as some analysts predict.
Bitcoin Price Prediction – Will BTC Price Reach $30K Soon?
As Bitcoin continues its rally, traders ask, “will Bitcoin’s price reach $30k soon?”
If Bitcoin’s price reaches the $30k level, it will likely break its two-month high. Since other crypto assets like Ethereum surpassed their two-month high levels, BTC’s likelihood to continue to pump is relatively high.
2M BTCUSD // Source: CoinMarketCap
However, for Bitcoin to reach $30k, it needs to increase by an additional 30%, quite a substantial gain even during this bear market. The only way Bitcoin can continue to see such a price hike is if the stock markets continue to either trade sideways or even show bullish momentum this week.
Earnings season is upon us, and profitable Q2 reports from tech companies could positively impact the stock markets. So far, the major news we’ve heard is about Apple planning to scale back spending and hiring for next year, which has investors worried.
Ethereum is leading the cryptocurrency bull market with its “merge trade” bull run as traders are looking to capitalize on the digital asset in anticipation of its network switching from proof-of-work to proof-of-stake. Before Bitcoin’s price breaks $30k, we may even see Ethereum’s price surpass $3k in an attempt to overtake BTC as the leading cryptocurrency by market cap.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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