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Bitcoin has risen 3.66% in the last 24 hours, recovering its 20-day EMA at $85,703. ArthurHayes predicted that the recent drop in BTC to 77K was at a bottom.
A few days after uncertainty, Bitcoin
BTC
$86 058
24-hour volatility:
3.1%
Market Cap:
$1.71 t
Vol. 24H:
$38.66 b
It has been bullish over the past 24 hours, surged by 3.66% to $87,443.27 each day. The key digital assets have regenerated a significant 20-day EMA ($85,703) and are currently testing this level as support, CoinMarketCap shows.
Bitcoin at Critical Junction
The Fibonacci retracement level indicates the main area of ​​resistance, with the 1.618 level at $85,939, serving as an important pivot point. If BTC can hold above this level, the next goals are 2.618 ($88,023), 3.618 ($90,107), and 4.236 ($91,395) expansions.
Meanwhile, the MACD indicator suggests that bullish momentum may be slowing down as the histogram bar begins to shrink.
If Bitcoin is facing denials in these resistance zones, it is possible that a pullback to a Fibonacci level of 0.618 ($83,858) or 0.786 ($84,205) may be on the table in front of the next leg.
Will BTC continue to rise?
Experts believe that one of the main reasons why Bitcoin continues to rise is its relationship with M2 money supply.
M2 Money supplies total amounts of distribution, including cash, deposit verification, and easy-to-access savings. Historically, Bitcoin prices have been strongly correlated with the expansion of M2.
The idea is that as more liquidity is injected into the economy, the value of rare assets like Bitcoin tends to rise at an accelerated rate.
This correlation could mean that even if M2 liquidity increases by just 10%, it could exceed the price of more than twice as much as Bitcoin.
This effect is due to a phenomenon known as power low leverage. In other words, Bitcoin prices respond disproportionately to changes in liquidity available.
Meanwhile, Bitmex’s Arthur Hayes believes Bitcoin’s recent decline to $77,000 may have hit a bottom.
He attributes the possibility of new bullish momentum to the conclusion of quantitative tightening (QT) and the possibility of an updated quantitative mitigation (QE) or supplementary leverage ratio (SLR) exemption by April 1.
Meanwhile, Strategy’s Michael Saylor claims that investors only have a few days left to buy under $100,000 of Bitcoin, claiming that “and never see five digits of Bitcoin again.”
Pakistan and Arizona take a pro-bitcoin stance
Furthermore, Pakistan is preparing to legalize cryptocurrency transactions. The country will introduce a regulatory framework to clarify crypto-related activities. Bilal bin Saqib, CEO of Pakistan Crypto Council, said the country was “sitting on the sidelines.”
Similarly, the Arizona House Commerce Committee approved the Bitcoin Reserve Bill (SB1373) with a narrow 6-4 vote.
The bill, sponsored by Republican Sen. Mark Finchem, aims to establish a “Digital Asset Strategic Reserve Fund,” managed by the state’s accounts.
The fund consists of legislative allocations and cryptocurrency assets seized by the state.
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Disclaimer: Coinspeaker is committed to providing fair and transparent reporting. This article is intended to provide accurate and timely information, but should not be considered financial or investment advice. Market conditions can change quickly, so we recommend that you review your information yourself and consult with an expert before making a decision based on this content.
A crypto journalist with over five years of experience in the industry, Perth has worked with leading media outlets in the Crypto and Finance world, gathering experience and expertise in this field after surviving the bear and bull market for many years. Perth is also the author of four self-published books.
Parth Dubey on LinkedIn
