Our experts told about the prerequisites for Bitcoin price growth. And assessed the prospects for further price movement of the first cryptocurrency
On April 11 Bitcoin rate exceeded $30.3 thousand for the first time since June 1, 2022. Within a day, the first cryptocurrency rose in price by $2 thousand. And its value increased by 7%.
Leading altcoins also rose in price, though not as much as the first cryptocurrency. Ethereum (ETH) price went up by 3.5%, to $1.91, BNB (BNB) – by 4.6%, to $327, Polygon (MATIC) – by 3.2%, to $1.13. Cardano (ADA) gained 4.7% to $0.4 and Ripple (XRP) rose 2.7% to $0.51.
The first goal for Bictoin is to fix it at $30,000
Bitcoin for the first time in 10 months broke through the key level of $30 thousand. The main trigger for the price increase was the investors’ confidence in the near completion of the US Federal Reserve’s tight monetary policy phase. In fact, the strengthening of BTC could happen a few days earlier. But most investors were absent in trading because of Good Friday and Easter in Catholic world.
On Monday traders returned to work and reacted to Friday’s set of statistics about employment market in the USA. And quite naturally – with a rise in prices. NFP employment data showed that employers feel confident and leave hiring rates high.
BTC has gained 6.74% since the beginning of April versus a 23% appreciation in March. The important thing now is to get a foothold above $30k. And the next ambitious goal is $35k, but it will take time to reach it.
Bitcoin price prospects
Bitcoin moved to the growth after a long period of consolidation between $27 thousand and $28.5 thousand. BTC accumulated momentum and was able to overcome the resistance level around $28.5 thousand. And then on a wave of “bullish” sentiment took a new top – the long-awaited mark of $30 th.
It is hard to say whether there will be correction, because the market is waiting for the publication of data on consumer price growth in the USA (CPI). Which will be unveiled on April 12. This index always influences the situation on the cryptocurrency market. Here we should understand that it can both push up. And it can also push down and stop the growth of Bitcoin. And the continuation of high inflation can have both effects. That is, if inflation is still quite high and fails to meet expectations for a decline. BTC rate may react with both decrease and growth in the short term.
In the long term high inflation will most likely help Bitcoin to grow. Because BTC is seen by some investors as an instrument to hedge against inflation risks. The collapse of the banking system, which is not expected to fully manifest itself yet, also contributes to the growth of bitcoin. Part of the deposits that have been withdrawn from U.S. bank accounts. It eventually settles on the crypto market, as retail investors in a panic are looking for tools to preserve value. And they’re also afraid of a repeat of the 2008-2009 crisis.
Our experts answering a possible question whether investors will have an opportunity to buy Bitcoin “cheaply” for $15 thousand. Our experts remind that between $15k and $25k Bitcoin was trading for 275 days. That means investors had almost a year to decide to buy this asset. If they didn’t do that, now they’ll have to buy bitcoin at $30k. In short and medium term the price of BTC will hardly go lower than $20k.
Expect inflation data
Bitcoin for quite a long time was in the “sideways position”, accumulating strength for a breakthrough to the level of $30 thousand. This happens today the coin has overcome this mark.
Now the US inflation data is expected to be released in March. A slowdown in price growth will be positive for the stock market. And BTC usually follows it. A decline in inflation gives the odds that the Fed will move to easing monetary policy. And this will also push indices and cryptocurrencies up.
Also amid forecasts of a global recession, more and more investors are moving into crypto as a way to protect funds. This explains the influx of capital into the crypto market. Now everything depends on inflation data. Because its decline will give a chance for Bitcoin to rise to $32,000-34,000. And the increase in prices will be negative – then we can expect a fall to $27-28 thousand. By the end of the week, these trends will manifest themselves in full force.
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