- At $45,000, there’s a degree of resistance that might stop the current advance.
- Central banks would taper quantitative easing and boost interest rates.
The price of Bitcoin (BTC) surpassed $40,000 for the first time in two weeks during the last several days. After reaching the most oversold levels since March 2020, technical indicators are now showing signs of improvement.
In order to reverse the downward trend in price since the top of $69,000 in November, buyers will have to climb decisively over $40,000. Sellers have been in charge for the previous several months because rallies have been stopped short of resistance levels. However, the relative strength index (RSI) is not overbought on the daily chart, which means that bitcoin might continue to rise in the near term. At $45,000, there’s a degree of resistance that might stop the current advance.
According to former Bank of Thailand director Anusorn Thammajai, the country’s burgeoning cryptocurrency investors might see their investments plummet in March. Next month, Anusorn projected, central banks would taper quantitative easing and boost interest rates.
Bubble at the End of March
Investors flocked to less risky investments as the price of cryptocurrencies fell by more than 40% last month. The crypto market had fallen by a staggering $1.35 trillion since November last year, according to CoinMarketCap.
Anusorn said:
“A cryptocurrency bubble will emerge at the end of March when liquidity in the financial market drops due to moves by central banks to taper quantitative easing and raise interest rates.”
Second-quarter investors who have exposure to hazardous assets should be especially vigilant this year. A financial ecosystem in the digital economy is being built by cryptocurrencies, but it also presents challenges to existing financial and economic institutions, he said.
