Where will Bitcoin go next after $30,000’s leap?

At the time of writing, the price of one bitcoin is $30,174. The most well-known cryptocurrency asset increased on Tuesday, surpassing the crucial psychological threshold of $30,000 as investors anticipated crucial inflation data later in the week that could affect cryptocurrency values.

By market capitalization, the biggest cryptocurrency was last up $30,237.42, more than 3%. It had climbed as high as $30,432.83 earlier in the day. It increased 7% on Monday night, becoming the first time since June to surpass the $30,000 mark.

As investors anticipated Wednesday’s newest technological advancement for the Ethereum network, ether increased more than 1.5% to $1,922.06. It had previously climbed to $1,937.03, its highest point in a year.

As bitcoin has already reached $30,000, a move into the mid- to high-30s would likely occur if it proceeds with conviction, which would compel short-term traders to cover their positions and place new orders. Some investors are attempting to position themselves in advance of it.

For the most recent reading on inflation and the Shanghai “hard fork,” investors will be watching Wednesday’s U.S. Consumer Price Index report.

As investors awaited Wednesday’s release of the US consumer price index (CPI) report for March and Ethereum’s Shapella upgrade, Bitcoin held steady above $30,000 on Tuesday. Bitcoin was trading at at $30,200, up more than 3% over the previous day. For the first time since last June, BTC reached the psychologically significant $30,000 milestone late Monday evening (ET).

Experts anticipate that the March CPI will continue the recent cooling trend, with an increase in the annual rate of 5.2% rather than the 6% seen in February. It’s also anticipated that the rate will slow month over month. Traders predict that this week’s CPI reading may reach a level that prompts the Fed to consider delaying rate increases at its next meeting, which would enhance the value of assets like bitcoin.

A move straight into the mid to upper $30,000 would be likely if BTC rises decisively, pushing short speculators to cover and purchase instead. Some investors are attempting to position themselves in advance of it.

The open interest (OI) in BTC perpetuals increased by 10% to 297,000 BTC on Monday, marking the largest daily gain since early October, according to analysts. After that spike, there was volatility and an intraday fall.
While BTC’s behaviour after OI spikes has varied, it has a tendency to predict long or short squeezes, according to analysts, who also noted that a similar daily jump in OI happened before the short squeeze in July 2021 and before the spring rally in 2022.

The price of Ether, the second-largest cryptocurrency, was recently around $1,895, up 0.3% from Monday at the same time. The Shapella upgrade for Ethereum, which is anticipated to launch Wednesday evening (ET) and enable validators to withdraw their previously locked-up ETH from the Beacon Chain, will be closely watched by validators and market observers.

The permanent futures-to-spot ratio fell to its lowest level since the network’s Merging in September as spot trading has dominated the ETH markets over the past month. In the beginning of the year, however, that ratio had risen sharply to over double pre-Merge levels.