Bitcoin reaches $44,000 high, faces resistance: returns to $42,000

  • Bitcoin experienced volatility as it surged close to $44,000 before facing resistance and retracting to $42,000, influenced by the U.S. Federal Reserve’s decision to maintain its monetary policy.
  • Despite the general cryptocurrency market downturn, Chainlink’s native token saw a modest 2% rise, highlighting its resilience amidst market fluctuations.
  • Analysts project a potential bullish trajectory for Bitcoin, with Markus Thielen forecasting a price target of $70,000 by the end of 2024.

Bitcoin surged to nearly $44,000 before encountering strong resistance and retracting to $42,000 as the US Federal Reserve opted to maintain its current monetary policy without any adjustments.

Bitcoin drops below $42K

The largest cryptocurrency by market capitalisation, bitcoin, fell from as high as $43,400 earlier in the day to $42,200 late on Monday.

Nearly every cryptocurrency experienced losses of similar magnitude or more over the day, as evidenced by the 1.3% decrease in the broad-market crypto index CoinDesk20, which included 18 assets.

Chainlink’s native token, a software platform linking blockchains with the outside world, saw the largest gain, with a modest 2% increase throughout the day.

Solana declined by 5% and is currently trading at $95, making it one of the worst performers during the same period.

Also read: Bitcoin’s rollercoaster ride at the start of 2024

Exactly one week ago, bitcoin’s price declined to $38,500 as excitement around the approval of the ETF subsided. Since then, the price has seen various gains and maintained a balance.

The peak occurred at the beginning of this business week when bitcoin surged to $43,750. However, bearish traders intervened, preventing the price from surpassing the $44,000 threshold.

Simultaneously, Jerome Powell, the chair of the US Federal Reserve, confirmed that there would be no significant adjustments to the central bank’s monetary policy, including maintaining interest rates. As a result, interest rates are set to stay above 5%, reaching a multi-decade high.

After falling below $42,000, bitcoin managed to hold onto that level and is currently trading just slightly above it. With a market valuation of $825 billion, it holds a little over a 51% advantage over alternatives.

Also read: As Bitcoin wavers, smaller tokens like XRP, SOL, INJ soar

Expert forecasts bitcoin to reach $70K

Looking ahead, Markus Thielen, head of research at Matrixport and an analyst at 10x Research, predicts that the largest cryptocurrency could reach $70,000 by the conclusion of 2024, representing an approximate 65% increase from current levels.

“A bitcoin rally to $70,000 appears plausible, supported by the macro environment, monetary tailwinds, the U.S. election cycle, and gradually increasing demand from TradFi investors allocating to bitcoin ETFs,” stated Thielen on Friday.

Sylvia-Shen

Sylvia Shen

Sylvia Shen, an intern reporter at BTW media dedicated in Fintech and Blockchain. She graduated from University of California, Davis. Send tips to s.shen@btw.media.

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