Bitcoin (BTC) ended last week at $34.5k, hinting at a potential bullish trend in the coming weeks. In the early Asian market on Monday, Bitcoin was trading around $34,260, marking a significant recovery from recent lows. The cryptocurrency is now halfway to reclaiming its all-time high (ATH) of approximately $69k. This bullish sentiment has been fueled by a notable technical development—a daily golden cross between the 50 and 200 Moving Averages (MAs) occurred over the weekend, diminishing prior bearish sentiments.
Amid concerns of high inflation in the United States, attributed to ongoing global conflicts, Bitcoin’s price against the US dollar is expected to exhibit behavior reminiscent of the Turkish Lira, which is currently experiencing price discovery.
Renowned crypto analyst Captain Faibik on the X platform believes Bitcoin is well-positioned to challenge the resistance zone between $38k and $39k after last week’s bullish close. However, Captain Faibik also suggests the possibility of Bitcoin retesting the support/resistance level around $31k. This level is critical, and the bulls must defend it vigorously to sustain the upward momentum. Captain Faibik is optimistic about Bitcoin’s prospects, setting a price target of approximately $52k in the next few months.
The ongoing recovery in Bitcoin’s price, which has also lifted the altcoin market, can be attributed to robust demand from institutional and retail investors worldwide. Moreover, with Bitcoin mining difficulty and hash rate reaching all-time highs, there is a strong expectation that its price will continue to rise in the coming years.
In the Forex market, the performance of Bitcoin and its interactions with the US dollar are becoming increasingly significant. As Bitcoin's price reacts to inflation concerns and economic uncertainty, Forex traders are closely monitoring these developments. The strong demand for Bitcoin, driven by global economic events, can impact currency pairs involving the US dollar, potentially leading to fluctuations and trading opportunities. Therefore, Forex traders need to stay informed about the evolving relationship between Bitcoin and traditional fiat currencies in order to make well-informed trading decisions.