Updated February 27th, 2024 at 12:14 IST

Bitcoin surpasses $57,000 mark after 2 years, Ethereum rises over $3,200

As Blackrock’s Bitcoin ETF trading volume hits $1.3 billion, and halving awaited, analysts are predicting this is an unprecedented bullish factor.

Reported by: Anirudh Trivedi
Bitcoin | Image:DALL-E 3
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Crypto market overview: Bitcoin, the leading cryptocurrency by market capitalisation as well as market price, has crossed the mark of $57,000 for the first time since November 2021, breaking a strong resistance point for the token. Following the trend, Ethereum has also surged beyond $3,200 indicating the strong bullish sentiment in the market fueled by high institutional allocation and the increased retail participation in the last few months. 

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Amid the gains of leading cryptocurrencies, the widely popular meme token PEPE has also recorded a staggering 50 per cent gain in the last 24 hours and currently trading at $0.000002085 apiece. 

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Image credit: Alternative.me

Sharing the technical perspective on the BTC movement, the CoinDCX Research Team said, “BTC broke out of its range and showed a parabolic rise. Currently, it's trading below the resistance level at $57,500. Likewise, ETH also broke out of its range, retested, and is now trading below the resistance level at $3,250.”

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Talking about the sudden rise in Bitcoin price, CoinSwitch Markets Desk said, “BTC showed the highest one-day gain since pre-ETF days and the rally continues today with an impressive double-digit gain. Bitcoin is now at a touching distance of Rs 50 lakh per coin with investors growing confidence in this rally; for the first time in 2 years. However, it is worthwhile to note that the journey from $57,000 to $69,000 (previous all-time high) might not be easy as BTC will face a lot of strong resistance points on the way., starting at $57,500.”

“With Blackrock’s spot Bitcoin ETF trading volume hitting a record $1.3 billion, and halving coming in the next 50 days, analysts are predicting this is an unprecedented bullish factor causing this gain,” added CoinSwitch.

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Underlining the strong momentum in Bitcoin ETFs trade volume, Rajagopal Menon, Vice President, WazirX said, “Bitcoin surged beyond $57,000 on Tuesday, marking its highest point since November 2021, extending gains from Monday's US market. Despite a slight dip to $56,500, it maintained a 9 per cent rise in the last 24 hours. In Monday's upswing, Bitcoin surpassed crucial levels—$53,000, $54,000, $55,000, $56,000, and $57,000—fueling active trading in US-based spot Bitcoin ETFs. The group, excluding Grayscale's GBTC, achieved a record $2.4 billion in trading volume. GBTC experienced its smallest one-day Bitcoin outflow since the ETF's January 11 launch, shedding only 921 tokens.”

Institutional investments driving Bitcoin rally

Edul Patel CEO of Mudrex highlighted MicroStrategy’s increased investments in Bitcoin as the driving force behind the current market momentum. Patel said, “MicroStrategy's acquisition of an additional 3,000 BTC for $155 million further contributed to the optimistic market sentiment. The next resistance lies at $57,400 and then $60,000. On the other hand, Ethereum achieved a two-year high, breaching the $3,200 level, driven by substantial institutional buying. Overall, the market looks bullish in anticipation of the upcoming Bitcoin halving.” 

Shivam Thakral, CEO of BuyUcoin said, “Bitcoin has finally broken out days after consolidating under its resistance. The cryptocurrency added $100 billion to its market cap by rallying over 10 per cent in a single day. This rally could have been fueled by institutional buying who expected this move in foresight. MicroStrategy bought 3,000 BTC yesterday just before Bitcoin broke the resistance. Ethereum has also broken $3,200 days after breaching $3,000, which could set a new ATH after Bitcoin cools down.” 

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Sharing the next resistance for Bitcoin, Vikram Subburaj, CEO, Giottus said, “Bitcoin's open interest, currently at $24.9 billion, is now higher than the $24 billion high recorded in November 2021. The next key resistance level, at $58,000, may signal a local top for Bitcoin if the rally continues. Among altcoins, Solana and Cardano registered 7 per cent gains today while Ethereum is trading above $3,200. Key upside targets for altcoins: Ethereum ($3,300), BNB ($420), Solana ($120), Cardano ($0.68), and Avalanche ($42).”

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Published February 27th, 2024 at 11:15 IST