The crypto market has been going up since the beginning of the year. The positive atmosphere is created thanks to both ecosystem - based and global reasons. Within the ecosystem, we have passed the approval of Bitcoin Spot ETFs and, from the global perspective, the major central banks are expected to start cutting the interest rates as early as Q2 2024.
The eyes are on the FOMC meeting in March. However, most probably, we will see a bit Hawkish stance of the FED as the data we get from the U.S. economy mismatches with the expected levels by the chair of the FED, Powel. Thus, we may need to be optimistic about the second half of the year for both global markets and crypto ecosystem.
The news and phenomenon of Bitcoin Spot ETF carried the price to as high as $48K in Bitcoin and the market accompanied the march of Bitcoin since mid - October 2023. However, the narrative of Spot ETFs has run out of energy and the show time is for upcoming Bitcoin halving and the interest rate cut + Quantitative Easing through the end of the year.
The reason why the level is a strong resistance is that that exact price range of around 52K is where the Fibonacci level of 0.236 hits the price in Bitcoin.
If you consider the swings in the price, the top and bottom of candles, we can extend it to as high as $53.5K but the whole market already accepted $52K as a point to take profit.
In the closer time frame, we did our best to stay above this level but, unfortunately, the bears were too strong and the bulls were full of fear.
Frankly speaking, I hardly held myself from taking a big chunk of profit from the spot bag of mine. Then, when I thought about the positive atmosphere in crypto and the need for crypto's uptrend to keep other market strong, I decided to wait and watch the market further.
Yet, there might be some bad news...
I care about the support the price of cryptocurrencies get from the moving average.
It is the first time after a long while that the price of Bitcoin was not able to bounce back from MA20 level. Even more, now it becomes another resistance level that many people will think of selling their tokens as the price touches it.
The daily support is around $46.5K and the RSI does not show a sign of a strong come back plan of Bitcoin bulls in the very short time. However, for those who hold their stablecoin portfolios strong, these days can bring some opportunities to broaden the bags.
AI coins performed well and the trend is still hot thanks to the new product introduced by Open AI. I will look for opportunities to add Manta, Dymension, Injective, Jupiter (Solana's top DEX) and SOL to my crypto bag from a good price level if possible.
What are your plans if Bitcoin cannot break above $52K?
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