Reasons behind Bitcoin Price 12% and Ethereum Price 10% Rally Today, more upside ahead?
Bitcoin price gains momentum towards $25K as investors “buy a dip” despite uncertainty in the U.S. BTC’s price soared 12% over the last 24 hours to reach a 6-month high at $24,769. The price is trading near $24.7K, trying to break through the $25K psychological level.
The Ethereum price has risen by 10% over the past 24 hours to $1,694. The ETH price reached a record high of $1700. Other top altcoins like BNB, Polygon(MATIC), Solana and XRP also rose higher, bringing a rebound to the wider crypto market.
CoinGape predicted the huge upside move to $25K when the BTC price was $21.7K. The main reasons for the sudden upward momentum in Bitcoin’s price are staggering whale activity, cooling inflation, falling U.S. Treasury yields, and low oil prices.
Investors in derivatives markets are optimistic about Ethereum and Bitcoin, which indicates the building long positions. There is evidence of traders profit-taking as Bitcoin and Ethereum prices rise. However, bullish sentiment is still evident.
The U.S. is seeing an increase in Bitcoin demand as the 30-day SMA Bitcoin Coinbase premium Index jumps to its highest level in the last few days. The ETH Coinbase premium has also seen a significant rise. These are the highest price premiums since August 2022.
Coinbase Premium Index. Source: CryptoQuantFurthermore, the MVRV ratio for Bitcoin is 1.2 and indicates an opportunity to buy at a low level. A MVRV lower than 1 is generally indicative of the lowest level at which to buy long-term.
Also read: When is the best time to invest or buy Bitcoin? Here’s what analysts predict
Michael van de Poppe, a popular analyst, suggested earlier that $21K was the best level to purchase the dip for the long-term. This reduces the risks associated with short-term investments. He stated that $25K is a strong resistance for Bitcoin price. Traders need to be aware of pullbacks.
Skew, a popular trader, shared that Coinbase spot and Binance spot have quite the supply. The asking price is in the $24.9K to $25K range. He advises traders to be aware of selling pressure and stalling momentum as these can lead to a retracement.
Also read: Bitcoin (BTC), Jumps 12% to Hit a 6-Month High, Is this a Dead Cat Bounce
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