Bitcoin: How to Trade the Crypto's Likely Path to New All-Time Highs
Investing.com | Feb 28, 2024 21:07
- Bitcoin is on the rise and faces resistance at $60K before targeting all-time highs.
- Ethereum could follow suit with the potential launch of a spot ETF in the offing.
- Meanwhile, can Solana overcome hurdles to unleash its hidden potential?
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After breaking the key $57K resistance, the world's largest cryptocurrency, Bitcoin, appears to be aiming at a new all-time high, with the psychological $60 barrier as the primary test above.
But while BTC has been on a solid uptrend - rallying some 34% since the start of the year - other cryptocurrencies are also presenting great growth potential.
For instance, Bitcoin's main competitor, Ethereum, has boasted a 43% YTD return. Meanwhile, Solana, currently the fifth-largest digital currency by market capitalization, has posted an 8% gain since the beginning of January.
Optimism in the crypto space primarily stems from Bitcoin's upcoming halving, historically known to generate significant demand before and after the event. Additionally, the recent launch of ETFs has attracted funds into Bitcoin, reflecting positively on its spot price.
Fundamentally, hopes of rate cuts by the Fed could continue to fuel gains in the sector in the coming months.
In this piece, we will take a look at three ways to benefit from Bitcoin's attempt to reach new all-time highs.
h2 Bitcoin Approaches $60,000, Eyes All-Time Highs/h2Bitcoin has been on the rise in recent weeks, making it challenging to find a better entry point at a lower price.
If Bitcoin manages to surpass the next psychological barrier of $60,000, it will pave the way for an attempt to reach the historical peak around $69,000.
MicroStrategy (NASDAQ:MSTR), a key investor in Bitcoin, has once again raised its exposure on the demand side.
Currently, its total coin holdings are valued at $6.09 billion, with an additional $155 million added in just the past few days.
Moreover, there's a continuous flow of funds into newly launched ETFs. Since January 10, when they were introduced, the total funds allocated have already reached $6.1 billion.
h2 Ethereum Nears Crucial Resistance: Can it Break Higher?/h2From a technical point of view, Ethereum bulls face a serious test in the region of $3400 per coin before a potential attack on all-time highs.
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Only if the indicated area is broken, the buyers can confidently consider reaching new highs.
Additionally, two other factors are noteworthy: the upcoming Dencum update and the potential launch of a spot ETF on Ethereum. This could create a similar demand effect as seen with Bitcoin.
h2 Solana Consolidates With Breakout in Sights/h2Solana, in contrast to Bitcoin or Ethereum, began the year with a consolidation phase.
The primary challenge faced by the entire ecosystem currently is network failures and outages, hindering its full potential.
However, Solana's trading volume on decentralized exchanges (DEX) surpassed Ethereum's early in the month, signaling sustained interest.
To resume consistent growth, Solana needs to surpass its recent high, situated around $124 per coin.
If bulls succeed, they are likely to target the highest point in April 2022, which is around $144.
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