Bitcoin and Ethereum prices rise this morning, both cryptocurrencies climbing more than 10%. While investors and traders are watching these developments closely, many are wondering if the rise of these cryptos is limited. This will the uptrend continue or are we approaching a potential peak?
BTC is currently trading at $30,860, reflecting a 2.6% increase over the past 24 hours and of more than 10% over the week. The rise in price of the most popular cryptocurrency can be attributed to several factors, including improving market sentiment and strong Producer Price Index numbers, which are supporting Bitcoin. At the same time, Ethereum achieves an increase of more than 10% over the day.
Bitcoin benefits from the producer price index in the United States
According to a report released Thursday, the seasonally adjusted producer price index fell 0.5% in March. The overall index came in at 2.7% year-on-year, below market forecast of 3%.
US statistics for this index indicate that inflation has come down faster than expected, likely due to reduced volatility. As a result, this unexpected drop exerts a significant pressure on the US dollarcausing its DXY index to fall to a yearly low of 100.83.
This news is positive as far as inflationary possibilities are concerned, because the Fed is expected to stop raising rates after its May meeting. This development is good news for risky assets and reflects an improvement in market sentiment.
Release of the minutes on Wednesday also revealed that several members of the Fed had discussed the suspension of the rate hike interest rates as they monitored the state of the banking sector.
Moreover, the Fed warned of a possible mild recession in the United States later this year. As a result, the bank will struggle to raise rates amid recession fears. The cryptocurrency market reacted well to this news and the BTC/USD pair rose accordingly.
Launching a new organization in the UK to promote Bitcoin
Bitcoin Policy UK (BPUK)a collaboration of entrepreneurs, environmental activists and bitcoin supporters, has been launched to promote the use of Bitcoin in the UK. The organization’s vision is to leverage the long-term benefits of Bitcoin for the UK economy.
BPUK aims to achieve its goals by promoting investment, educating people about future jobs in the Bitcoin industry, and increasing Bitcoin awareness and training.
The ultimate aim is to use wasted and stranded energy resources to attract investment to the UK, create job opportunities and stimulate new businesses.
The group seeks to bring together stakeholders such as politicians, environmentalists, entrepreneurs, energy providers and bitcoin specialists to analyze how Bitcoin can benefit UK residents, businesses and local communities.
The London Stock Exchange Group (LSEG) will offer Bitcoin futures and options
THURSDAY, the London Stock Exchange Group (LSEG) and Global Futures and Options (GFO-X) announced a partnership to provide Britain’s first regulated trading and clearing of Bitcoin index futures and options derivatives.
LSEG’s affiliated clearing house in Paris, LCH SA, will offer clearing solutions for futures contracts, and options contracts on the BTC index denominated in dollars and settled in cash traded on the GFO-X exchange.
The launch of the new service is scheduled for fourth quarter of this year, waiting French and European Union regulatory approval.
LCH SA will work with the FCA-licensed GFO-X trading platform to provide a regulated and centrally cleared trading environment, which should benefit Bitcoin.
The price of bitcoin
This Friday, the BTC/USD pair saw an increase, breaking through the $30,500 double upper resistance level. If the pair can sustain above this level for the 4-hour candles, this should result in an upward movementsignificant in the market.
Going higher, Bitcoin may encounter an immediate resistance level at $31,400, and if the demand for BTC increases, it can break through this level and hit the $32,300 level.
THE RSI and MACD indicators are both in shopping areawhich supports the possibility of a continuation of the uptrend. However, it is advisable to wait for BTC to pull back and retest the $30,500 level before taking any buy positions.
In case the BTC/USD pair breaks below the $30,500 level, it is likely that the $29,700 or $28,850 levels will act as support.
The price of Ethereum
Ethereum, the second most popular cryptocurrency, is experiencing a significant uptrendhaving surpassed the resistance level of $2,075. Cryptocurrency now heading towards $2,150which is a resistance level established by a previous high in May 2022.
If ETH manages to successfully close above the $2,150 level, it could trigger an uptrend that may reach $2,250 or $2,300.
However, if Ethereum fails to close above the $2,160 level, the price could drop to $2,075 or even $2,030. Keeping an eye on the $2,160 level is key to determining whether to consider a buy or sell order today.
Top 10 Alternatives to Bitcoin and Ethereum to Watch
Cryptonews Reviewed top 10 cryptocurrencies for 2023. If you are looking for a higher potential investment opportunity, there are many other projects worth considering.
Disclaimer: This linked article presents the views of crypto industry players and is not part of the editorial content of Cryptonews.com.
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