Cryptocurrency Prices Extend Uptrend
Cryptocurrency prices continued to rise on Wednesday, following a day of consolidation on Tuesday. Investors are growing increasingly bullish about the outlook for digital assets, driven by speculation about a spot Bitcoin ETF and the upcoming Bitcoin halving in April.
The stock market, however, had a different story. Stocks traded lower due to mixed earnings reports from Alphabet and Microsoft, combined with a resurgence in the U.S. 10-year Treasury note. This prompted a risk-off approach among traders.
Bitcoin’s Steady Climb
Bitcoin steadily climbed from support at $34,000 to a high of $35,154 near midday. At the time of writing, it is trading at $34,675. Kitco senior technical analyst Jim Wyckoff stated that Bitcoin futures prices were firmer, and that the BTC bulls have the near-term technical advantage. The path of least resistance for prices remains sideways to higher in the near term.
Analyst Daan Foppen pointed out that Bitcoin broke out to the upside of the range it had been stuck in since late 2022, which is a positive sign for bulls. However, Foppen warned about the bearish monthly fair value gap (FVG) and advised keeping an eye on the monthly close for a potential change in scenario.
Analyzing the Charts
Zooming in on the 1-day chart, Foppen noted that Bitcoin is currently trading at a hefty premium. He advised buying when the price is trading at a discount. For traders who prefer to be more aggressive, Foppen looked at the 1-hour chart and highlighted an untested order block around $31,000.
Market analyst Rekt Capital highlighted that Bitcoin’s behavior in this halving cycle is different from the previous one, making it difficult to use past performance to predict future outcomes.
Overall Cryptocurrency Market
The majority of tokens in the top 200 traded in the green on Wednesday, with only 3 tokens recording losses greater than 3%. Liquity, Tellor, and Pepe led the gainers, while Polymesh, Orbs, and Mina saw the biggest declines.
The cryptocurrency market cap currently stands at $1.27 trillion, with Bitcoin’s dominance rate at 53.5%.
