Bitcoin Price Soars To New Record, Then Pulls Back

The price of the leading cryptocurrency, Bitcoin, has skyrocketed more than 60% since the start of 2023. This powerful rally drove Bitcoin to a fresh all-time high above $73,500. However, the digital currency has since retreated from that peak, falling below $66,000 – a key support level.

According to renowned crypto analyst Ali Martinez, Bitcoin has now “established a solid support range” between $64,750 and $66,700. Martinez notes that 382,000 addresses hold over 275,000 Bitcoins worth around $18.7 billion at these levels.

The analyst advises closely watching these price levels. If Bitcoin breaks below this range, he warns the focus could “shift to the next significant demand zone between $60,760 and $62,790.” At that lower level, some 797,500 addresses control over 298,000 Bitcoins valued at over $20.2 billion.

While taking a hiatus from its blistering 2023 run-up, Bitcoin remains well above its late 2022 levels of around $16,500. Many investors continue to pour funds into the top cryptocurrency, seeing it as a hedge against inflation and instability in traditional financial markets.

Bitcoin Faces Resistance, But Analysts Predict Huge Growth

An analyst noted that Bitcoin is facing stiff resistance. Many wallet addresses hold significant Bitcoin between the $70,180 and $71,430 price levels. If Bitcoin’s price reaches or surpasses those levels, these wallets could sell to break even, creating resistance.

Bitcoin’s recent price drop came after it reached new all-time high prices five times in just seven days. The drop coincided with broader financial market uncertainty as investors moved towards safer investments.

The recent inflation report, higher than expected, increased worries about the Federal Reserve’s approach to interest rates. Many now believe the Fed might keep rates steady or raise them further to control inflation.

Meanwhile, financial services firm Bernstein initiated coverage of the online trading platform Robinhood with an “outperform” rating and a $30 price target. Bernstein cited expectations of a “monster” cryptocurrency market cycle.

The analysts predicted a “monster” crypto cycle, forecasting the total cryptocurrency market capitalization to skyrocket to $7.5 trillion by 2025 – nearly triple its current $2.6 trillion value. This surge could translate into Robinhood’s cryptocurrency revenue increasing by a factor of nine.

Bernstein’s bullish outlook extends beyond Robinhood. The firm projects Bitcoin’s market cap to reach $3 trillion by 2025, up from $1.43 trillion. This implies that Bitcoin’s price could double to over $150,000 next year. Bernstein forecasts a market cap of $1.8 trillion for Ethereum, the second-largest cryptocurrency.

Related Reading | Elon Musk Teases Tesla Taking Dogecoin For Cars: DOGE To Skyrocket?

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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