- Bitcoin Bulls staring at $50,000
- Bitcoin up 24% in March
- Bitcoin adoption in Russia and Malaysia
Investors are increasingly plowing back into speculative investment opportunities, focusing on highly battered assets. Cryptocurrencies are racing higher after months of sell-offs that saw many tokens post double-digit losses as a correction from record highs gathered steam.
Bitcoin is one of the coins leading the move higher, sentiments in the burgeoning sector having improved. With the world adjusting to new realities from the war in Ukraine to aggressive monetary policies by central banks, investors are adjusting their portfolios, taking advantage of high prospective opportunities on the risk-reward front.
Bitcoin technical analysis
Bitcoin bulls have already set sights on the $50,000 handle if recent price action is anything to go by. The largest crypto by market cap has already scaled above $47,000. BTCUSD is up by more than 20% in March as a bounce back from 2022 lows of $33,135 gathers pace.
Bulls are staring at strong resistance near the $48,500 as part of the developing uptrend. A breakthrough in the key resistance level should allow bulls to steer a rally to highs of $50,000. On the flip side, short-sellers are staring at strong support near the $45,000 handle above which BTCUSD remains well supported for further upside action.
A sell-off followed by a daily close below the $45,000 handle could reignite renewed sell-off, which could see BTCUSD retracing back to the $40,000 handle. Considering recent price action and development on the global scene, Bitcoin remains well supported to continue posting gains in the short term.
Russia Bitcoin adoption
One of the factors driving Bitcoin price higher are reports that the Russia State Duma Committee is contemplating allowing friendly countries to make payments for oil on cryptocurrency. Bitcoin is believed to be top on the list as the preferred mode of payment.
Faced with crimping economic sanctions from the West, Russia is trying to hit back as it tries to stay afloat amid the ongoing war in Ukraine. President Vladimir Putin is trying to reduce Russia’s dependence on the US dollar, consequently pushing for another alternative payment mode for the country’s top exports of oil and gas.
Bitcoin being used to settle millions of dollars worth of payments for oil and gas would be a major boost for the flagship cryptocurrency. This might explain why investors increasingly buy the coin sending its price higher.
Malaysia Bitcoin talk
In addition to the development in Russia, cryptocurrencies are also nearing mainstream adoption. Leading government officials have asked Malaysia to adopt cryptocurrencies as legal tender. The deputy minister of communications has asked legislators to consider adding Bitcoin and other coins as a form of legal tender in addition to the Malaysia ringgit. Malaysia could join El Salvador, which has already established Bitcoin as a form of payment as the country battles record-high inflation levels.
Additionally, Bitcoin status has further been heightened with the Luna Foundation Group, which seeks to promote a truly decentralized economy, settling on the coin as its reserve currency. The foundation has already bolstered its Bitcoin reserves to over $1.1 billion.
Final thoughts
Recent developments affirm Bitcoin’s growing importance and use in the global financial system. Increased adoption in the mainstream financial sector is one factor that should continue to support a spike in Bitcoin price.
Following the 40% plus pull back from record highs, Bitcoin is looking increasingly cheap on the risk-reward front, drawing lots of investment dollars, consequently pushing its price higher. An improvement in risk-on mood in the capital markets should continue to support a spike in BTCUSD in the near term.
