Key Notes
- Bitcoin shot up 3.66% in the past 24 hours, reclaiming the 20-day EMA at $85,703.
- Arthur Hayes forecasted that BTCโs recent drop to $77K was the bottom.
- Pakistan is said to legalize crypto trading while Arizona passed the Bitcoin Reserve Bill
.
After days of uncertainty, Bitcoin
BTC
$86 058
24h volatility:
3.1%
Market cap:
$1.71 T
Vol. 24h:
$38.66 B
has turned bullish in the past 24 hours, surging by 3.66% and hitting a daily high of $87,443.27. The leading digital asset has also reclaimed the crucial 20-day EMA ($85,703) and is currently testing this level as support, CoinMarketCap shows.
Bitcoin at a Critical Junctureย
The Fibonacci retracement levels indicate key resistance areas, with the 1.618 level at $85,939 acting as a crucial pivot point. If BTC can hold above this level, the next targets would be the 2.618 ($88,023), 3.618 ($90,107), and 4.236 ($91,395) extensions.
Meanwhile, the MACD indicator suggests that bullish momentum may be slowing down, as histogram bars have started shrinking.ย
If Bitcoin faces rejection at these resistance zones, a pullback to the 0.618 ($83,858) or 0.786 ($84,205) Fibonacci levels could be on the table before the next leg up.
BTC to Continue Rising?
Experts believe one of the key reasons Bitcoin may continue to rise is its relationship with the M2 money supply.
The M2 money supplies the total amount of money in circulation, including cash, checking deposits, and easily accessible savings. Historically, Bitcoin price has shown a strong correlation with the expansion of M2.ย
The idea is that as more liquidity is injected into the economy, the value of scarce assets like Bitcoin tends to rise at an accelerated rate.
Because of this correlation, even a modest 10% increase in M2 liquidity could potentially more than double Bitcoinโs price.ย
This effect is due to a phenomenon known as power-law leverage, which means that Bitcoinโs price reacts disproportionately to changes in available liquidity.
On the other hand, BitMEXโs Arthur Hayes believes that Bitcoinโs recent drop to $77,000 may have marked a bottom.ย
He attributes the potential for renewed bullish momentum to the conclusion of quantitative tightening (QT) by April 1 and the possibility of renewed quantitative easing (QE) or exemptions to the Supplementary Leverage Ratio (SLR).
Meanwhile,Strategyโs Michael Saylor remains steadfastly bullish, claiming that investors only have a couple of days left to buy Bitcoin under $100,000, and โthen you will never see five-figure Bitcoin againโ.
Pakistan and Arizona Take Pro-Bitcoin Stance
Moreover, Pakistan is preparing to legalize cryptocurrency trading. The country is set to introduce a regulatory framework to bring clarity to crypto-related activities. Bilal bin Saqib, CEO of the Pakistan Crypto Council, stated that the country is โdone sitting on the sidelines.โ
Similarly, the Arizona House of Representativesโ Commerce Committee has approved the Bitcoin Reserve Bill (SB1373) in a narrow 6-to-4 vote.ย
Sponsored by Republican Senator Mark Finchem, the bill aims to establish a โDigital Assets Strategic Reserve Fundโ to be managed by the state treasurer.ย
The fund would consist of legislative allocations and any cryptocurrency assets seized by the state.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
