Bitcoin continues to look green in all short and medium-term as the cryptocurrency reconquest lost territory. As of this writing, the price of BTC stands above the psychologically significant mark of $24,000 and looks poised to hold the resistance level.
Magnetic Forces Push Bitcoin To Rise
Bitcoin has been in an uptrend since January 9th. At that time, the cryptocurrency broke above the 200-day Simple Moving Average (SMA), a critical level that historically operates as support and resistance during major market trends.
At that level, the big players choose to accumulate or profit from their BTC holdings. When the cryptocurrency is below the 200-day SMA, the market takes advantage of the low price and starts aggressive accumulation, as seen in the chart below.
This accumulation is very similar to BTC’s 2019 lows that preceded the massive 2021 rally to all-time highs. Reclaim from SMA 200 days forecast both changes in trends and market conditions.
According to Samson Mow, a longtime Bitcoin supporter and CEO on Jan3, This level has a major impact on the BTC market:
Bitcoin 200 WMA is like a magnet. When the price is at the bottom, it is the attraction that pulls the price up. After we cross the 200 WMA, the polarity flips and becomes a repulsive force pushing things up.
What’s Behind the Bitcoin Rally?
A positive performance in the legacy financial market, an improvement in macroeconomic conditions, as the US Federal Reserve announced a 25 basis point (bps) increase and a surge in BTC spot trading volume. These three factors support what appears to be a steady trend for 2023.
After a long period of selling pressure, bearish price action, and accumulation, the bulls look poised to take over the market. In the short term, Bitcoin could go higher in the $30,000 region if the trend continues.
According to economist Alex Krüger, BTC market participants may see some resistance at these levels before continuing the bullish momentum:
(…) breaking through 30k and then pulling back will be a normal market dynamic. The market tends to open the main draw level, the trigger stops, brings the bastard, and then flushes. And 30k-35k seems doable.