As of March 24, Bitcoin (BTC) has made significant strides, nearing a price point of $90,000 as the Wall Street session commenced. This increase is accompanied by a warning that the current market presents “conflicting signs and signals,” which necessitates careful analysis.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Daily Gains Reflecting Market Optimism
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD reached $88,772 on Bitstamp, marking its highest price since March 7. This upward movement has mirrored that of major stock indices, with the S&P 500 and Nasdaq Composite both showing increases of 1.6% and 2%, respectively.
The optimistic sentiment in the markets has been bolstered by reports of the U.S. government easing upcoming trade tariffs, reflecting a willingness to adopt more sector-specific regulations instead of blanket policies, which has contributed to rising stock prices.
S&P 500 4-hour chart. Source: Cointelegraph/TradingView
Additionally, momentum within the cryptocurrency market has gained traction amidst growing speculation that the U.S. government may utilize profits from its gold reserves to acquire Bitcoin. Such a move is deemed “budget-neutral” and could significantly impact BTC purchasing behavior.
Key Levels for Bitcoin to Maintain Stability
BTC/USD 1-day chart with 21 SMA. Source: Cointelegraph/TradingView
Alan further noted that identifying clear validation and invalidation levels will be crucial for investors. Specifically, reclaiming the yearly open would signify a decreased probability of retesting lower price levels.
Investors should remain cautious, as potential downward trends could surface if these key support levels are not secured. As the market evolves, prudent investment strategies should involve careful monitoring of these indicators.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
