Bitcoin approached a new high, encouraged by a series of positive events that have continued to support its consolidation since the falls of last January 24. For analysts, the $40,000 target is “imminent.”
Technical analysis is resolutely pointing to the $40,000 target, approaching which seems imminent. “In addition, at this time, the US$40,000 also coincide with the upper part of the bearish channel through which the underlying has been moving since the all-time highs of November,” commented José María Rodríguez, an analyst at Bolsamanía. “The truth is that despite the fall of 53% from the historical maximums to date, the minimum and maximum growth in the medium-long term remain intact. And that way it doesn’t fall off, ”he concludes.
“If it breaks $40,000, that would surprise a lot of traders and could see some upside momentum ,” said Oanda analyst Edward Moya. “Bitcoin will continue to trade as a risky asset and will likely benefit if central banks continue to show some reluctance to tighten monetary policy,” he adds. In this sense, the expert considered that the decisions on the interest rates of the Bank of England and the European Central Bank on Thursday could have a greater than normal impact on cryptocurrencies, “since Wall Street is looking for a signal about the direction in which the appetite for risk is directed”.
But before these important appointments, the market has been animated by a series of events. This Tuesday, in a statement before the United States Securities Commission, MicroStrategy declared that it had bought 660 BTC between December 30 and January 31 for approximately 25 million dollars. Michael Saylor’s company took advantage of the falls to expand its positions in bitcoin and demonstrate with facts its declarations that they will not sell their holdings in the cryptocurrency.
On the other hand, India launched a regulatory framework for crypto assets. Among the main novelties was a 30% tax on income from cryptocurrencies and other digital assets, Finance Minister Nirmala Sitharaman announced. In addition to placing the income from cryptocurrencies and non-fungible tokens (NFT), which would be another disincentive for trading and investing in digital assets.
But the market ignored this fact and sought to focus on the good news that the third Asian power will not ban digital currencies. In addition, it has emerged that the Reserve Bank of India will launch the digital rupee in fiscal year 2022 – 2023.
Lastly, some good news came from the side of Ukraine’s Deputy Prime Minister Mukhailo Fedorov, who noted that bitcoin mining will turn Ukraine into a hi-tech state after the government legalized cryptocurrency last September. He was confident that the development of the cryptocurrency industry could attract transparent investors and enhance the country’s identity in this sector.