CS - Bitcoin Breaks Above Key Resistance Level Of $25000

2023-03-17 10:02:01 ET

The price of %Bitcoin () has broken above the key resistance level of $25,000 U.S. and is now trading at its highest level in more than six months.

Bitcoin has not crossed the $25,000 U.S. level since August 2022.

At its current price of $26,650 U.S., Bitcoin is at its highest level since June 2022 when it was trading at $31,000 U.S.

The latest rally brings Bitcoin’s gain for the year to 60%, trouncing the year-to-date performance of stocks, bonds and commodities such as oil.

As recently as December, Bitcoin’s price was hovering around $16,000 U.S.

The latest rally comes as several traditional banks falter and collapse in the U.S. and Europe.

Over the past week, the U.S. government has been forced to seize %SiliconValleyBank () and %SignatureBank (). In Europe, the Swiss central bank has extended a $54 billion U.S. lifeline to troubled lender %CreditSuisse ().

Investors and traders see the problems in the global banking sector as a positive for the future of cryptocurrencies, blockchain technologies, and digital assets.

Traders are now watching to see if Bitcoin can move above the next technical hurdle it faces at $28,000 U.S.

Bitcoin had tried and failed several times in recent weeks to break above $25,000 U.S., falling back to $20,000 U.S. as recently as March 10 of this year.

Now that Bitcoin has breached $25,000 U.S., some traders expect it to quickly break through resistance at $28,000 U.S. on its way to $30,000 U.S. per coin.