Benzinga - ZINGER KEY POINTS
- Bitcoin surges 20%: Reaches over $24,000, breaking resistance.
- U.S. backs Silicon Valley Bank: Protects from $300 billion losses.
- Trading activity oscillates: Potential bull run anticipated.
- Investor confidence grows: Crypto fever spreads despite regulation.
Bitcoin (CRYPTO: BTC) has surged 20%, soaring above $24,000 since March 11th, leading crypto gains as U.S. acted to backstop the Silicon Valley Bank deposits. This will protect banks from $300 billion in losses. Investor optimism in cryptocurrency is expected to continue.
On Monday, Bitcoin saw a dramatic rise that was unexpected to many traders. In the wake of this surge, those who had wagered on BTC's price falling were caught off guard and forced to cash out their more than $81 million worth in shorts.
Bitcoin has experienced an unprecedented journey since its humble beginnings in 2012 of just $20, now reaching stratospheric highs of nearly $69K back in November last year - a massive 344900% increase.
Price has been in a steep decline since reaching its peak, subsequently rewarding bearish investors and leaving most others bearing losses.
In June 2022, price saw continued weakness, breaching the weekly 200 simple moving average support level, which is now resistance. This has inhibited any further bullish movements until now, but breaking above it could indicate the start of an uptrend.
In January of 2023, price surged beyond the daily 200 simple moving average; however, it has not been able to generate a substantial bull run. Instead, trading activity is oscillating between $19K and $25K without any clear direction in sight.
Despite the steady increase of 20%, this surge likely serves as a mere appetizer for what's to come - possibly even breaking through levels of resistance that have long kept prices stuck in place.
But every journey begins with a single step, and we gingerly await the exciting possibilities ahead!
In the face of mounting regulatory pressure, investor confidence in cryptocurrencies has been on a rapid incline. Evidenced by its potential for bearing hefty returns and diversifying risk away from traditional asset classes, crypto investments are increasingly becoming attractive to investors worldwide.
While it's still uncertain whether this bullish sentiment will remain unshaken over time, one thing is sure. Crypto fever continues to spread unabatedly!
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