Bitcoin prices have reached a 17-month high, the highest level since May 2022. The rally caught many people off guard, as the "king of cryptocurrencies" rose steadily, bringing a bullish atmosphere to the crypto market. So what are the reasons driving the rally? What about BTC's subsequent development? A previous article from veDAO Research Institute mentioned that although fake news caused BTC's price to experience a roller coaster ride, market sentiment was positive and the subsequent trend would be positive. veDAO Research Institute will bring the reasons related to the recent BTC rally and an analysis of subsequent trends. Reasons for the rise in BTC prices Considering that the crypto market is susceptible to volatility, a single factor cannot be regarded as the only reason for the rally. In the past few days, BlackRock's BTC spot ETF appeared on the DTCC website and was added back after being briefly removed, which is also considered to be one of the reasons for the rally.
BTC halving is imminent There are less than 6 months until BTC halving. The cryptocurrency community expects that this event will start the next bull market cycle. According to analysts such as Michaël van de Poppe, now (6 to 10 months before BTC halving) is the best time to invest in altcoins, and venture capitalists are eager to start getting financial support. BTC's daily MA5 turned up to around 33,800, but it is very difficult to fall here. However, if the rise is weak under such a large increase, sooner or later someone will take profits and flee. If it breaks through the trend line of 35,000, you can find an opportunity to increase your position, or wait for the support of 32,000 before going long. As BTC prices continue to rise, market sentiment is obviously high. It can be said that multiple factors such as the imminent BTC halving, the pressure on the US banking industry, and the rise in US Treasury yields have driven this round of price increases. Although there may be fluctuations in the short term, in the medium and long term, BTC prices are in an upward channel. For investors, now is still a good time to deploy BTC. With the gradual release of the halving effect, BTC may start a new bull market cycle, which is worth looking forward to. Finally, let me mention ETH. The Cancun upgrade is almost certain not to come before the end of the year, so it continued to weaken after a day of strength yesterday. Its support level is 1740-1650. At present, the main market is still Bitcoin ETF, so Bitcoin is still the main
