Bitcoin Breaks Above $24,000 For The First Time In 2023

Bitcoin continues to see green across all short-time and medium-timeframes as the cryptocurrency reconquest lost territory. As of this writing, the BTC price stood above the significant psychological mark of $24,000 and seems ready to keep smashing resistance levels.

BTC rallying on the daily chart. Source: BTCUSDT Tradingview

The Magnetic Forces Pushing Bitcoin To The Upside

Bitcoin has been on an upside trend since January 9th. At that time, the cryptocurrency broke above the 200-day Simple Moving Average (SMA), a critical level that has historically operated as support and resistance during major market trends.

At these levels, big players choose to accumulate or take profit from their BTC holdings. When the cryptocurrency was below its 200-day SMA, the market took advantage of the low prices and began an aggressive accumulation, as seen in the chart below.

Bitcoin BTC BTCUSDT Chart 2
BTC sees increasing accumulation similar to the 2019 market bottom. Source: Jarvis Labs

This accumulation resembles the 2019 BTC bottom that preceded the massive 2021 rally into new all-time highs. The reclaim of the 200-day SMA forecasted both shifts in trends and market conditions.

According to Samson Mow, long-time Bitcoin supporter and CEO at Jan3, these levels have a major influence on the BTC market:

The Bitcoin 200 WMA is like a magnet. When price is below, it’s an attractive force pulling price upwards. After we cross the the 200 WMA, the polarity flips and it becomes a repulsive force pushing price upwards.

What’s Behind The Bitcoin Rally?

A positive performance in legacy financial markets, an improvement in macroeconomic conditions, as the U.S. Federal Reserve announced a 25 basis point (bps) and a spike in the BTC spot trading volume. These three factors support what appears has an enduring trend for 2023.

After a long period of selling pressure, downside price action, and accumulation, the bulls seem ready to take over the market. In the short term, Bitcoin could trend higher into the $30,000 region if the trend continues.

According to economic Alex Krüger, BTC market participants could see some resistance at those levels before resuming the bullish momentum:

(…) breaking through 30k then pulling back would be normal market dynamics. Markets tend to run key round levels over, trigger stops, bring suckers in, then flush them out. And 30k-35k looks very doable.

#Bitcoin #Breaks #Time


Related Posts

South Korea to examine crypto staking services following the Kraken case

As reported by a local publication on Feb. 15, Korean financial authorities are looking into the staking services market. However, as the unnamed official specified to the…

Elon Musk Hints At New Twitter CEO At End-2023, Causes FLOKI To Skyrocket 45%

Elon Musk announced in December of last year that he will step down as CEO of Twitter once a replacement is found, but will continue to operate…

Bitcoin eyeing ‘next big move’ which could see $19K retest — analyst

Bitcoin (BTC) is headed to either $28,000 or $19,000 and this week could decide all, fresh analysis says. In Twitter comments on Feb. 15, popular trader Skew…

Messari Analyst Reveals Why Polygon Is Set For Steady Growth

Through his tweet today, Messari analyst Tom Dunleavy singled out Polygon as a top-performing crypto asset and further described traits that set the cryptocurrency for further growth….

Sequoia Capital, Paradigm among VCs facing ‘tricky’ FTX investor lawsuit

Users of bankrupt crypto exchange FTX have reportedly taken aim at financiers who promoted the platform suggesting their efforts added an “air of legitimacy” to the now-defunct…

Sen. Warren vows reintroduction of AML bill that extends to DAOs and DeFi

A bi-partisan anti-money laundering (AML) bill that covers “decentralized entities” such as decentralized finance (DeFi) protocols and DAOs will soon be reintroduced to Congress, according to United…

Leave a Reply

Your email address will not be published. Required fields are marked *