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As rising US Treasury rates begin to wreak havoc on global capital markets, Bitcoin bulls attempt to chip away at the $60,000 resistance barrier.
On March 19, Bitcoin (BTC) faced stiff resistance at the $60,000 mark as bulls spent the day climbing back from an early morning decline that briefly dropped BTC into the sub-$56,500 area.
According to TradingView data, after being rejected at the $60,000 mark on March 18, the price of Bitcoin fell to $56,268 in the early hours of Friday before dip investors returned to help push the price back above $58,500.
Key Bitcoin price indicators reveal that, amid the challenges in breaking through $60,000, top traders are being steadily bullish, as demonstrated by a spike in leveraged long positions over the past week as the BTC trading range narrowed.
The first Bitcoin ETF in Latin America was approved in Brazil, making it the fourth ETF approved in the Western Hemisphere, following three newly released ETFs in Canada.
Bulls look to flip $60,000 from resistance to support
Chad Steinglass, head of trading at cryptocurrency capital markets company CrossTower, recently addressed the stresses Bitcoin encountered at the $60,000 range, pointing out that the top cryptocurrency has faced “at least some opposition at any round number on the road up,” and that if a resistance level is reached, it becomes help.
According to Steinglass, “it will take some chipping away to bust through $60,000 with some sort of authority,” but Bitcoin’s recent resilience “in the face of strong macro headwinds” suggests there is no cause for the bullish trend to stall.
The current funding standard, according to Steinglass, is $57,000 to $58,000, and it should keep “as long as any unlikely incident doesn’t derail it,” such as new lockdown steps or a major change in US Treasuries.
“The relationship between the dollar and treasuries has flipped 180 degrees as the story has quickly become risk-off and flight to quality instead of growth and inflation, so treasuries and dollar are both ticking higher as all risk assets are selling off.”
Traditional markets ends the week mixed
Growing interest rates for US Treasuries continue to place pressure on global capital markets, which finished Friday’s trading session mixed, as traders became worried about the prospect of a sharp increase in inflation impeding economic growth and triggering a “near-term change in the Federal Reserve’s ultra-accommodative monetary policy.”
The S&P 500 and Dow were unable to resolve early market challenges and ended the day down 0.06 percent and 0.71 percent, respectively, while the NASDAQ showed early resistance to the slowdown and closed the day up 0.76 percent.
On Friday, several altcoins saw double-digit losses, indicating that the cryptocurrency market’s overall uptrend is still intact.
The highest performing top-10 coin has been Uniswap (UNI), which has risen 11.5 percent to a price of $33.50, while Pundi X (NPXS) has seen its price explode 50 percent higher to an intraday peak of $0.0055.
Ether (ETH), the top altcoin, continues to face resistance above $1,800, with data showing that bulls may wait until the $1.15 billion worth of ETH options expire on March 26 before putting on a fresh display of power.
The overall cryptocurrency market cap now stands at $1.803 trillion and Bitcoin’s dominance rate is 60.5%.