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Bitcoin Approaching $40,000, ETH Tests Resistance Above $21,00 As Cash Flows Return to the Crypto Market

Cryptocurrencies were stagnating during most of this year after starting 2023 on the right foot, but it seems like the demand for crypto assets is picking up again in the last two months, with buyers being in control as they push to new highs for the year.  Bitcoin’s price has risen to its highest level since May 2022 after pushing to $38,410 on Friday, while Ethereum touched the resistance zone around $2,140.

Looking at the BTC/USD daily chart above, the digital currency reversed some of the move down from the 2021 high of $69,000, until it stopped just below $36,000 early this month, and has spent the majority of the current week above that level. With the extension no longer in effect, the zone around there has turned into support for BTC now. Trading above that level indicates that buyers are gaining control.

Ethereum Daily Chart – Buyers Restesting the Resistance

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MAs have turned into support now

One of the reasons for the revived demand in the crypto market has been the economic and political trouble around the world this year. Central banks have raised interest rates like never before, while geopolitics have increased the risk of holding fiat currencies. Besides that, recently the court hearings have gone in favour of the crypto market, which has improved the sentiment for digital assets.

Cash flows are heading back into crypto assets again, with large digital currencies getting the majority of the funds as investors gain confidence that a spot Bitcoin exchange-traded fund (ETF) would be allowed by US regulators after a 10-year wait. A program like this would provide traditional investors with secure and regulated access to the crypto realm. According to CoinShares, crypto products saw $176 million in inflows last week, marking the ninth consecutive week of inflows.

As a result, crypto bulls are in charge with ETHEREUM retesting April’s high at $21,40 as mentioned above, although the bullish momentum here hasn’t been as strong as in which continues to make new highs. Buyers pushed BTC above $38,000 which has been the high in the last month or so, opening the door for $40,000.

Bitcoin BTC Live Chart

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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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