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▲ Bitcoin (BTC), Middle East War/ChatGPT Generated Image ©
Despite geopolitical crises in the Middle East and turmoil in global stock markets, the leading cryptocurrency Bitcoin (BTC) has strongly broken through its key resistance level, the 50-day moving average, for the first time in two months, leading overall investor sentiment in the crypto market, including XRP (Ripple), and signaling the start of a full-fledged bull run.
According to crypto media outlet CoinDesk on March 16 (local time), Bitcoin surged over 3% in the past 24 hours, surpassing the $73,700 mark at the time of writing, and peaking at $73,868 during intraday trading. Notably, it strongly jumped over the 50-day moving average of $71,125, which was considered a major resistance level in the market, further solidifying its upward momentum.
This positive price movement for Bitcoin occurred after several days of robust recovery, even amidst geopolitical tensions from the Iran war and severe turmoil in global stock markets, particularly those in Asia. Alex Kuptsikevich, a senior market analyst at FxPro, stated in an email interview that since the 50-day moving average is an indicator of the mid-term trend, a clear breakthrough of this level will be a significant turning point for the market in the future.
However, this technical breakthrough does not necessarily guarantee a long-term upward trend. For example, in early January, after breaking the 50-day moving average, the price saw a short-term rise of about 8%, but that momentum faded within just two weeks, turning back into a sell-off. This indicates that mixed results have occurred in the past, which should be kept in mind.
Nevertheless, the current upward breakout, as the price approaches the $75,000 mark, foreshadows further rallies along with extreme volatility. $75,000 is a critical zone where market makers, who provide liquidity to exchanges, hold billions of dollars in net short gamma positions.
Therefore, if Bitcoin's price continues to rise towards $75,000, market makers will inevitably have to buy large amounts of Bitcoin at higher prices to rebalance their net exposure to neutral, which is expected to act as a powerful catalyst further amplifying market volatility.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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