Bitcoin and other cryptocurrencies rose sharply on Friday, gaining momentum this week in accelerating institutional acquisition and the recovery of risk interest from investors in the broader market.
Bitcoin, the leading cryptocurrency, has risen by almost 3% to more than $ 44,000, approaching the highest levels seen since the beginning of the year.
"Bitcoin is on the verge of a major explosion as the price is in the process of testing the $ 45k, which has been a strong resistance since mid-January," said Yuya Hasegawa, an analyst at crypto exchange Bitbank in Japan.
The peer-to-peer ether also rises to the surface. The token supporting the Ethereum blockchain network increased by almost 3% to more than $ 3,100, trading at higher levels since mid-February.
The same price action was observed among other small cryptocurrencies, or "altcoins," when solana and litecoin both increased by 3%.
Cardano, however, fell by about 1%. The cryptos "Meme" dogecoin and shiba won - calling that because it is based more on online jokes than important blockchain projects - are also low. Dogecoin has experienced a decrease of almost 3% and shiba has dropped to less than 1% in red.
Analysts noted that the rise in bitcoin was compared to a rise in interest rates on open trading, which reflects higher inflation in the futures market and could support the price trend.
Hasegawa at Bitbank also said that the level of futures-contract funding has "entered" in the wrong direction, indicating that key positions have been collected by short-term traders.
"Short-term positions can result in short-term collapses in the event of an explosion, which could increase the price significantly," Hasegawa said.
“The high target price in the short term will be the area between $ 48k and the psychological level of $ 50k. If the price fails to test the $ 45k resistance, it could enter the interim adjustment phase and fall to $ 42k, ”the analyst noted.
