Following Bitcoin's significant price hike, the market anticipates continued growth, sparking various discussions among investors and analysts.
Impact of Bitcoin's Growth on the Financial Market
Last week, Bitcoin rose by 4.25% closing above $86,000, and on March 24, the price surged above $88,700. Founder of 10x Research, Markus Thielen, noted in his report the positive reversal indicators of Bitcoin, suggesting a renewed uptrend. In this context, US Spot Bitcoin ETFs showed a net inflow of $744.4 million after five weeks of outflows. Conversely, Ethereum ETFs continue to see outflows for the fourth consecutive week.
Analysis of Stock and Currency Markets
The S&P 500 Index rose to its 20-day exponential moving average at 5,742, where bears are expected to step in. A pullback from this level could push the index down to 5,670. However, a closure above the average suggests the correction may be ending. The US Dollar Index (DXY) bounced off the 103.37 level, aiming for the 20-day EMA, which may witness attempts by bulls to form a floor.
Review of Cryptocurrency Price Activity
Bitcoin broke above the 20-day EMA, signaling the beginning of strong recovery, soon to face resistance at the 50-day SMA. Analysts are divided on Bitcoin's short-term prospects, expecting significant resistance around $90,000 and possible pullback to $80,000. Meanwhile, BitMEX co-founder Arthur Hayes predicts further rally to $110,000 before the price drops to $76,500.
Bitcoin's rise sets the stage for a potential renewed bullish trend, impacting financial and cryptocurrency markets. Investors and analysts continue to evaluate possible scenarios and resistance points for further movement.
