bitcoin-news/will-bitcoin-hit-1-million-by-2028-experts-clash/” target=”_blank” rel=”noopener nofollow”>bitcoin It may currently be trading below a resistance level of $43,500, but analysts see this bearish action slowing down and bullish performance is expected in the near term. In a recently published weekly report According to Coinbase, many technical factors currently slowing down the price of many cryptocurrency industries (especially bitcoin) are beginning to dry out, which could lead to a more favorable trading environment.
Intensification of the positive macro context
Price action shows that bitcoin has mainly traded below $43,700 since mid-January as the launch of spot ETFs sparked mixed reactions in the market. Despite averaging billions in weekly flows, ETFs also put downward pressure on the price of bitcoin, particularly with a considerable liquidation of shares in the Grayscale btc Trust exchange-traded fund (ETF) led by the defunct crypto exchange ftx.
Coinbase analysts, on the other hand, have noted that dynamics are beginning to shift towards a more favorable trading environment as the pace of sales has slowed. To support this claim, the report pointed to the rise of crypto lending. Celsius Network company from bankruptcy and recent bitcoin spot ETF inflows. Notably, these ETFs averaged over $200 million in daily inflows last week, with average daily volume of $1.35 billion.
BTCUSD slightly below the $43K level today. Chart: TradingView.com
The report also highlighted factors in the current US economy that may contribute to a positive trend in the cryptocurrency market. Market factors include a widening US budget deficit and a reduction in US household savings pointing to activity and inflation, raising the possibility of a better crypto market than months ago.
In addition, analysts anticipate a slowdown in the economy during the first half of the year. As a result, the Federal Reserve's easing tactics could include cutting interest rates by 100 basis points this year. Ultimately, this would coincide with the long-awaited bitcoin halving, causing a spike in the prices of bitcoin and other cryptocurrencies.
The Coinbase report also touched on Solana's revamped ecosystem that is supported by token launches like the recent airdrop of Jupiter, Solana's leading decentralized exchange aggregator.
bitcoin Current Status
bitcoin saw its bitcoin/bitcoin-price-by-year-end-etf-inflows/” target=”_blank” rel=”noopener nofollow”>suffering from small multiple spikes times last week, and one case caused a 4.57% increase on January 30. However, the cryptocurrency mainly bounced between $41,800 and $43,700 during the week, with the biggest swing between $42,500 and $42,900. According to a social media post According to crypto analyst Ali Martinez, 912,626 btc have now been traded within the $42,560 price range, making it the most important zone of interest to date.
An impressive total of 912,626 btc?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener nofollow”>#btc has been realized within the price range of $42,560, marking it as the most important zone of interest for bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener nofollow”>#bitcoin till the date! pic.twitter.com/jdR0vtxWVE
– Ali (@ali_charts) February 2, 2024
At the time of writing, bitcoin is trading at $42,800, down 0.64% in the last 24 hours.
Featured image from Adobe Stock, TradingView chart
