Why is the price of bitcoin rising today?
The market is showing signs of strength, especially with the recent breakout rally. This suggests that the bearish trend may be losing momentum, increasing the likelihood of a breakout upward. Altcoins also look promising, with several coins potentially completing their corrections and preparing for the next upward movement in the first quarter.
Bitcoin is at a critical stage. The price is testing important resistance levels, and a breakout above them could open the door for further growth potential. On the weekly chart, Bitcoin remains in a larger bullish market. Although there has been a slight slowdown recently, it reflects a pattern seen in 2023. In October of that year, a bullish crossover on the MACD preceded a significant upward movement that could potentially repeat.
The recent purchase of Bitcoin by MicroStrategy is one of the main reasons for the recent surge in Bitcoin. Under the leadership of Michael Saylor, the company continues to bet on the long-term value of Bitcoin. This rise is also part of a broader trend in the cryptocurrency market, fueled by factors such as:
Institutional interest: Major companies and investors are increasingly getting involved in bitcoin.
Clearer regulations: more countries are introducing clearer rules, which increases investor confidence.
Positive economic signals: global financial troubles are prompting people to use bitcoin as a safe asset.
Bitcoin as a reserve: more and more companies are considering bitcoin as a valuable asset that can be held for the long term.
What lies ahead for bitcoin?
Looking at the daily chart, Bitcoin reacted to the Fibonacci retracement level of 23.6%. This is an important support level often seen in corrective phases. While it is possible that the current pullback of Bitcoin may be complete, more evidence is needed to confirm this.
Bitcoin has not yet confirmed a local top. The recent rise started early yesterday morning, and it is important to watch key resistance levels. The first key level to watch is the previous swing high at $97,450. If Bitcoin tests and exceeds this level, it could signal further upward movement.
