Bitcoin has surged past the $31,000 mark, marking the first time it has reached this level in ten months. This bullish sentiment comes amidst falling global inflation rates, with many expecting central banks to soon shift from their current policies of monetary tightening. At the start of April, traders were still digesting last month’s banking crash and the Federal Reserve’s 25 basis point rate hike, leading to a period of consolidation. However, following the release of the non-farm payrolls report, which showed a drop to 236,000 in March from 326,000 the previous month, bulls began to re-enter the market. Inflation data has also been released, with consumer prices in China falling to an eighteen-month low, pushing bitcoin back over $30,000. Prices have also dipped in the US, falling to 5% in March, with retail sales also edging lower.
These factors have so far helped bitcoin, leading to prices moving above $31,000 for the first time since last June. During last month’s outlook, BTC was trading at a low of $19,628.25 on March 10, and as of writing, BTC/USD has now moved to a high of $31,005.61 earlier today. One of the catalysts for this move was a breakout, which took place on the 14-day relative strength index (RSI). Bulls moved past a ceiling at the 68.00 mark, moving deep into overbought territory, by hitting a peak at 72.44. In January, the index rose to a high of 89.00, which means that despite being overbought, there could still be some further gains as the month progresses. However, should the RSI fall below its aforementioned support at 68.00, bears could begin to reappear.
It remains to be seen where bitcoin will end the month, but the current market status is clearly in favour of bulls. Investors will be watching closely to see if bitcoin can maintain this momentum, as well as monitor any shifts in central bank policies that could impact the cryptocurrency market.
