The global crypto market value has increased by around 3%, with a significant uptick in Bitcoin’s price, which has already surpassed $23,000. Approximately $1.09 trillion is the current market capitalization as a whole.
The recent increase in cryptocurrency prices is related to the possible cessation of interest rate hikes. With interest rates rising over the past year, riskier assets like cryptocurrency have become less appealing, therefore the prospect of a decline in value has been a catalyst for investing.
The largest cryptocurrency, at the time of writing, was trading over $23,000, down 0.7% over the previous day. However, BTC has increased by about 40% in January and, if history is any indication, BTC may be poised for a significant move higher given that its recent upsurge reminds the bull revival of mid-2019.
What are the experts saying?
Michael Van De Poppe took to his Twitter handle and said, “Chop chop chop, that’s what we see here. Might be some distribution going on in which we’ll drop south to test some levels and liquidity for #Bitcoin. Break and flip $23.1K -> test at $24K. Losing $22.3K -> $20K test.”
He added, “Still in resistance zone here for #Bitcoin. Probably one more wick up before we correct, as I think that another retest of the range low isn’t going to hold.”
Another analyst by the name of Captain Faibik said that Bitcoin is getting ready for its next bullish impulse and revealed that $25k is the next target.
Titan Of Crypto said that there was a big move incoming for Bitcoin as it is flipping green. Have a look.
The crypto market kicked off the year 2023 on a positive note and majority of the cryptocurrencies landed on a high trading area. However, now it looks like the market has taken a U-turn as most of the currencies including Bitcoin, Ethereum, XRP, Cardano, Solana and other large cap currencies have registered a loss. The Bitcoin price has shed nearly 1.5% in the last 24hrs while the lead altcoin, Ethereum, has lost its $1,600 level.
At the time of publication, Bitcoin is selling at $22,656 after a drop of 1.2% in the last 24hrs. Also Ethereum has lost 4.57% in the span of a day and is now trading at $1,553.
Why Is Bitcoin Price Down ?
The last three weeks of January have been exceptionally good for cryptocurrencies. Nevertheless, now as the flagship currency, Bitcoin gradually makes a downward movement which is considered to be highly unusual considering its last few days performance. This also points towards investors who have become less optimistic towards bitcoin’s price action.
It’s a known fact that Bitcoin and other large cap cryptocurrencies are highly correlated with tech stocks. Hence, this becomes one of the reasons for Bitcoin and other cryptocurrencies to register a loss today.
Secondly, the crypto market might be reacting to the upcoming US fourth-quarter gross domestic product (GDP) which is set to be released Thursday.
Thirdly, the market experts point towards the entry of hedge funds into short positions. Next, the volatility in the crypto market could be due to Microsoft’s cloud outage which has affected investors’ sentiment. Lastly, traders anticipating ease in the monetary policy in the coming days might have caused crypto market volatility.
However, next week’s Fed meeting is expected to give these cryptocurrencies a much required push if the inflation rate is decreasing.
Initially the crypto market started the day on not so good terms, but one currency that has been holding on to its bullish momentum is Bitcoin. While the King currency is holding on to its $23,000, it suggests that investors are still positive on Bitcoin. This has resulted in the global crypto market moving past $1 trillion.
At the time of writing, Bitcoin is selling at $23,084 with a surge of 1.63% over the last 24hrs.
Meanwhile, a well-known crypto analyst and trader is predicting an opposite direction for Bitcoin. The analyst known as Capo informs his 710,100 Twitter followers that the crypto market performance is not dependent on organic demand. The direction in which the current bull runs and the high time frame resistance is moving, the analyst feels that it is manipulative without any demand.
Bitcoin To See Stronger Correction Ahead ?
To this one of his followers claimed that when Bitcoin price surged from $18,000, stablecoins got minted indicating demand rise. To which Capo asserted that this is definitely an artificial demand and the way this demand rises, stronger will be the correction.
However, last week Capo had claimed that Bitcoin was about to test its resistance level of $21,000. The analyst had also said that there is no bullish confirmation yet, but it turned out to be the opposite.
On the other hand, another crypto analyst and strategist known as Smart Contracter is of the opinion that the flagship currency will see some correction once BTC surges 38% in Jan.
Smart Contracter is the one who makes use of Elliott Wave theory which makes use of an advanced technical analysis to predict future price action. Elliott Wave uses crowd psychology that uses waves. As per the theory, whenever an asset is in waves one, three and five, it tends to be bullish. On the contrary, if an asset enters waves two and four, it suggests that the asset will see a correction.
It is very evident that the bulls are continuing to exert their influence as Bitcoin’s surge continues. The on-chain signals for the king cryptocurrency reveal that the overall sentiment is optimistic.
At the time of this writing, Bitcoin price is equivalent to $23,035, an increase of 9.3% over the course of the previous 24 hours and 16% over the course of the previous seven days.
Although Bitcoin is getting closer and closer to recovering its 200-week moving average, investors and traders are still very wary of the bullish BTC price movement.
Is Bitcoin Aiming for $30k?
This level of resistance is formed by the intersection of the horizontal hurdle located at $23,384 and the 200-week Simple Moving Average (SMA), which is located at $24,645. The price of bitcoin has not fallen below this SMA since June 2022, with the exception of a short period in March 2020.
The bulls are probably going to go for this hurdle as their next objective. If the price of Bitcoin is able to overcome this juxtaposition, namely by transforming $24,645 into a support floor on a weekly timeline, then the route will be clear for it to attempt to break the $30,000 threshold.
The bullish action seems to be unshakeable; nevertheless, a rejection at the aforementioned 200-week simple moving average located at $24,645 would be an important indicator for a bearish outlook. In the event that the support level of $19,301 is breached, this will serve as an additional confirmation of the bears taking over.
But like I said, the bulls seem unwavering right now. Signals are pretty strong and all technicals point to Bitcoin breaking bullish. This could very well be the end of that prolonged bear market. It might tumble a little, as it tends to, but I genuinely believe the worst is over.