Bitcoin has rallied more than 10% in the last 24 hours, and things are looking pretty bullish. As expected, the price surged quite fast as soon as Bitcoin broke the $40k-$40.5k region. It reached $44.2k before consolidating a bit to $42.8k and now continues to move up. Sven Henrich, the founder of northmantrader.com, believes that the recent Bitcoin rally could be due to the crisis that Ukraine is facing. There are several other factors that we will take a look at.
The reason for the recent Bitcoin rally
After struggling at $40k for more than a week, the price of BTC has finally broken through at quite a pace. It almost reached the critical resistance of $45k, which will be important to break to confirm this isn’t a fakeout. Now coming to the reason for this rally, Sven Henrich had the view that the Ukraine crisis is causing this. There are a few important factors that are attached to this.
First comes the ‘fundamentals.’ He explains that the adoption and acceptance of Bitcoin continue to increase, and the path will remain the same, according to him. However, the benefits that Bitcoin has brought to Ukraine by being the medium to raise funds have acted as a support for this rally. Plus, people are really starting to see how beneficial it is to have control of your own money due to the war.
Coming to the technicals, he added that Bitcoin might be decoupling with the equities market as it has made a higher low in February. Now, that is another great thing for the markets.
The market sentiment also looks good
With the price of Bitcoin staying below $40k and correcting quite strongly, there was fear and uncertainty in the market. But with the recent rally, the fear and greed index shows that we are back to the neutral zone. Now, this is a good place to be because the chances of correction are also low, and people aren’t panicking too much as well. It’s important to note that market sentiments change quite fast as it was in extreme fear yesterday.
What are your thoughts on the recent Bitcoin rally and the reason behind it? And do you think we will reach $50k in March? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.