Hassan Maishera
TL;DR
-
BTC has dropped below $70k once again after failing to break past the $72k resistance level.
-
However, BTC’s price could surge higher in the near term as buyers dominate the market.
BTC Fails to Break Above $72k
Bitcoin, the world’s leading cryptocurrency by market cap, has failed to break above the $72k resistance level. BTC was trading above $71k on Friday before crashing below $69k, a move that resulted in more than $300 million positions being liquidated in the market.
At press time, BTC is trading at $69,539, up by less than 1% in the last 24 hours. Despite Bitcoin failing to break past the $72k resistance level, YouHodler’s chief of markets, Ruslan Lienka, believes that the market is still in a favorable situation.
While speaking to Cryptowisser, Lienka said,
“For Bitcoin, we're seeing a favorable situation in the market right now. It can overcome the resistance level in the zone of 71k-73k and renew all-time highs in the following weeks, driven by optimism in financial markets. Such positive sentiment is caused by expectations of coming interest rate cuts in the US and Europe that stimulate capital inflow into risk assets.
Elevated trading activity with meme stocks such as GameStop and other penny stocks with low ratings shows a growing risk appetite. Although the crypto market is high-risk by definition, we also notice that crypto investors are shifting from major coins towards meme coins, increasing the risk.”
Lienka added that there are no obstacles to market growth in the near future. Regarding the Bitcoin ETFs and their contributions to BTC’s price, Lienka said the positive inflow of funds into the ETFs could see BTC’s price surge higher in the short term.
"Bitcoin ETFs inflows show only part of the market picture. There are plenty of factors that affect the price, and some of them might be much stronger. For instance, Bitcoin ETF is designed mainly for bulls/investors; opening a short position through ETF is challenging, and only some brokers give such an option. Thus, ETF flows don't reflect sellers' short positions in the market. At the same time, the resistance level in 71k-73k is characterized by the concentration of sell orders in the zone, even if these orders are not seen in an order book at the moment," Lienka added
With Bitcoin and other major altcoins suffering over the last few days, the total cryptocurrency market cap has dropped below $2.6 trillion and now stands at $2.54 trillion.
