Bitcoin price is finally seeing some gains, but it looks weak compared to other crypto assets. The macroeconomic environment has woken up, shaking up all asset classes.
At the time of this writing, Bitcoin price is trading at $16,800 with sideways movement in the last 24 hours. In the top 10 cryptos, BTC lags behind Ethereum, Binance Coin, and Cardano. The cryptocurrency responded positively to the beginning of 2023.
Bitcoin Price Aims For Higher Levels
According to new report from the QCP Capital trading desk, the institution returns to action and allocating capital in Gold and other assets. The precious metal has experienced a 15% rally over the past 60 days and continues to rise.
Trading desks believe that institutions provide “alternative assets” or stores of value. The price of Bitcoin has not yet benefited from this trend, but the crypto market is recording some gains. In particular, the token board is non-fungible.
The sector is coming back to life after months of reduced activity. The popular NFT collection saw 2 to 3x profits by the end of 2022 and is likely to maintain that trend. QCP Capital notes the price action of Bitcoin and Ethereum:
(…) in line with Gold and NFTs, BTC and ETH are catching up to some extent at the beginning of the year. Despite the mini rally, BTC is still trading in a very tight falling wedge – with the 18k breakout level key to the topside.
If the price of Bitcoin can flip $18,000 and trend higher on the back of institutional allocations to alternative assets, the cryptocurrency can recover higher levels. The trading desk shows $28,000 as a critical level to watch.
This level is the neckline of the “Head and Shoulders” pattern formed by BTC over the past two years. In addition, $ 28,000 has a confluence with the 61.8% Fibonacci Retracement level, which means that many players will keep an eye on it.
What can be used as an obstacle for Bitcoin
In the short term, Bitcoin price is seeing resistance at current levels. Analyst Caleb Franzen statement that BTC is likely to continue to see resistance around these prices and more.
In 2022, the level at $17,000 operates as a critical support. After it disappears, the level becomes a significant resistance, possibly creating friction for the cryptocurrency. As analysts pointed out, Bitcoin has been rejected from this level in an attempt to rally beyond the $18,000 mark. Franzen said:
Bitcoin is decisively at some potential resistance. Although the price may break above this diagonal resistance channel, we cannot ignore the overhead resistance of the 2022 support range. We have already been rejected there…