© Reuters
Investing.com – The surge continues this Tuesday, in what can now be described as a bullish explosion, the cryptocurrency having reached a peak above $35,000, at $35,175, the highest since but 2022 , 17 months ago.
At the time of writing this article, the is showing a gain of more than 12% over 24 hours and almost 20% over a week. The other major cryptocurrencies are also increasing to a lesser extent, with the and the increasing for example by “only” 11% over one week.
It is also interesting to note that Bitcoin, and many other cryptos, are now back above the thresholds they were at before the FTX debacle that panicked the market last year.
This outperformance of Bitcoin compared to other cryptocurrencies has mechanically pushed up the dominance of Bitcoin (its share in the total capitalization of the crypto market), which now exceeds 51%, after starting the year at around 38%.
As for the reasons for this strong Bitcoin rally, we will highlight the increased speculation that the United States Securities and Exchange Commission is close to approving a cash exchange-traded fund.
Notably, the legal battle between the SEC and digital assets company Grayscale ended in favor of the latter on Monday, after the District of Columbia Court of Appeals formally ruled that the agency had wrongly rejected the Grayscale application for a spot bitcoin ETF.
Additionally, media reports have suggested that Blackrock’s Bitcoin ETF application is moving closer to fruition, with the iShares Bitcoin Trust now appearing to be listed on the Depository Trust and Clearing Corporation website.
These developments have significantly increased the optimism that was already high in recent days about the approval of such products this year, which should attract more institutional investors to a very weakened cryptocurrency market.
Another factor that favors the rise of Bitcoin, although to a lesser extent, is the recent weakness of the dollar, in a context where there is a growing bet that the Federal Reserve is finished raising interest rates This year.
Finally, we note that the bank Morgan Stanley (NYSE:) published a note yesterday in which it reiterated that anticipation of the next Bitcoin halving is also a major bullish factor, suggesting that crypto spring is coming.
“Estimates of the exact date of the next halving vary, but history indicates that it could occur around April 2024. Based on current data, signs indicate that the crypto winter could be in the past and that the crypto spring is probably on the horizon” wrote the bank.
Technical thresholds to monitor on Bitcoin
From a graphical point of view, the strong rise in Bitcoin over the last two days now allows us to affirm that the underlying trend of Bitcoin is positive.
However, the scale and speed of the rise calls for caution, with the risks of an intermediate correction appearing high, as Bitcoin quickly fell back below $35,000 after a brief test of this key threshold.
In this context, $34,000 and $33,000 will be the first potential supports to take into account. On the upside, the $35,000 threshold and last night’s peak at $31,175 form an immediate resistance zone for BTC/USD.