The price of Bitcoin is holding steady at $37,000; will the upward trend continue?
$37,000 at the beginning of Tuesday's trading. The failure to sustain the upward momentum at the end of last week led to moderate pressure on prices in the cryptocurrency market.
Today’s Cryptocurrency analysis on behalf of Rania Gule Market Analyst at XS.com
The market capitalization of cryptocurrencies reached nearly $1.42 trillion yesterday morning, as the price of Bitcoin held around $37,000 at the beginning of Tuesday’s trading. The failure to sustain the upward momentum at the end of last week led to moderate pressure on prices in the cryptocurrency market.
I believe that if the Bitcoin exchange rate remains around $37,000, after maintaining an upward trend for over a month now, the price will likely be confined between the lower limit of the price channel at $36,600 and the upper limit at $38,300. Breaking these levels will be the key determinant of the trend in the long term, while the price may consolidate in this range for some time in the short term. The prudent decision at the moment is likely to be buying on cryptocurrency dips cautiously.
It’s worth noting that Ethereum failed to hold above the $2,100 level for the third time this year, with previous attempts in April and early November. The second-largest cryptocurrency has returned to the $2,050 level, which doesn’t seem alarming yet but sets the stage for further short-term negative pressure.
The main reason for the negative bias in the cryptocurrency market could be the warning issued by the U.S. Commodity Futures Trading Commission (CFTC) to cryptocurrency exchanges, stating that it will vigorously pursue platforms operating in the U.S. market if they attempt to circumvent the Commission’s customer protection system.
In my opinion, increased interest in Bitcoin exchange-traded funds (ETFs) amid anticipation of U.S. regulatory approval could attract up to $70 billion in new capital to the Bitcoin market. Expectations suggest that 10% of funds currently invested in stock and bond ETFs will shift to Bitcoin ETFs, providing significant liquidity for price increases if approved.
However, after the transition from current funds to immediate Bitcoin trading ETFs and the injection of liquidity followed by price increases, many traders are likely to decide to take profits, negatively impacting Bitcoin prices in the long term.
I anticipate that during the next bullish trend in the cryptocurrency market, especially in Bitcoin’s price, Cardano (ADA) could also experience an increase to $11. ADA is expected to rise through the advanced decentralized finance (DeFi) ecosystem, utilizing Cardano’s blockchain, which boasts advantages over Ethereum in terms of reliability, security, and decentralization.
