Bitcoin, the king of cryptocurrencies, has crossed various important resistances since the beginning of the year. according to CoinGeckoThe coin is now up 14% in the weekly period, and is trading at $23,008, making BTC break through the resistance levels of $22,000 and $23,000 that have limited the rise of the crypto.
This year witnessed a complete U-turn in investor sentiment in cryptocurrencies as both Ethereum and Bitcoin made huge gains, along with other top altcoins. This has caused the entire crypto market to experience a renaissance in almost every aspect.
At the time of writing, the current market cap of the entire cryptocurrency market is at $1.05 trillion, according to it CoinMarketCap.
Crypto Winter Thawing?
Twitter has been very bullish since the coin broke through the latest line of barriers. Analysts say that a break in the $23k wall will validate the entry of this year’s bull market, with some even targeting $100,000, or more, in the long term.
This recent price movement led to the liquidation of short positions in Bitcoin. There are several reasons why this BTC broke $23k.
When it’s finally done, we’ll see the glorious god candle up to $30K
Don’t think today is the day it will happen
be careful and don’t let greed be your friend pic.twitter.com/22UMHUNBCv
— KALEO (@CryptoKaleo) January 20, 2023
Just a few hours ago, the NASDAQ index jump nearly 3% as tech stocks lead the market rally. Bitcoin is heavily connected to the traditional financial space. This means that if a major index like the NASDAQ continues to rise, Bitcoin will follow suit with all cryptocurrencies.
With a wider financial space looking at economic crash, bullishness in the crypto and stock market will continue as the situation improves. December’s Consumer Price Data (CPI) contributed to the optimistic mood.
Image: Crypto News
What’s Next For Alpha Coins?
Bitcoin price movements are expected to slow down in the short term, some analysts said, as the next target will be $30k in the coming weeks or months.
At the time of writing, Bitcoin bulls should try and consolidate above the current support at $22,661 which will be retested by the bears in the next few days as $23,328 rejects the current bullishness.
Chart: Tradingview
Investors and traders should also keep an eye on the current consolidation as the market momentum may decline. Bitcoin halving – an event that will reduce the total supply of coins in the market – will also create upward pressure when it happens.
BTC total market cap at $442 billion on the weekend chart | Chart: TradingView.com
Bulls should also monitor current conditions in the traditional financial space. With coins the relationship is high with the stock market, the future of Bitcoin will depend on the movement of the stock market along with improving macroeconomic trends.
Now, Bitcoin holders should have enough strength to consolidate and target the resistance of $24.5k and $25k.
Featured image by Helvetia