Why Bitcoin Price is Up Today? What Next For BTC Price?

The post Why Bitcoin Price is Up Today? What Next For BTC Price? appeared first on Coinpedia Fintech News

Bitcoin price gained almost 6 percent during the early New York trading hours to exchange around $28,959. The sudden spike led to more than 88 percent of short traders liquidating in the past 24 hours. Moreover, there was a general bearish sentiment after Bitcoin traded around $27.2k in the past few days. Additionally, Bitcoin price closed last week on a bearish outlook after dropping from trading above $30k to around $27.4k.

The report of a significant decline in first-quarter deposits by First Republic Bank is a clear indication the United States banking system is slowly collapsing despite the Fed’s support. Moreover, more investors are confident in Bitcoin as a hedge against inflation.

Social Dominance for Bitcoin on the Rise

As a globally traded and recognized digital asset, there could be several reasons why Bitcoin price edged higher on Wednesday despite the bearish outlook. Nevertheless, market intelligence platform Santiment had previously noted that crypto investors were returning to Bitcoin following the bleeding in the altcoin market. Additionally, Santiment noted that the percentage of discussions revolving around Bitcoin remains high and above average.

Meanwhile, Santiment expects Bitcoin’s volatility to remain relatively high in the next few days, particularly fueled by next week’s FOMC statement.

Bitcoin Price Action

The Bitcoin price is technically approaching a crucial resistance/support zone that could decide the next trend in the coming weeks. On one hand, Bitcoin price could be forming a head and shoulder formation on the daily time frame, which could lead to a significant capitulation in the near future.

On the other hand, if the bulls want to continue with the new year relief rally, Bitcoin price will have to rally beyond $29k and retest $30k and beyond.