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Bitcoin, the king of cryptocurrencies, has gone through a number of critical resistances since the beginning of the year. According to CoinGecko, the coin is now up 14% in the weekly timeframe, and trading at $23,008, making BTC break through the $22,000 and $23,000 resistance levels that have limited the crypto’s ascent.
This year has witnessed a full u-turn in investor sentiment on both ethereum and bitcoin cryptocurrencies garnered massive gains, as well as other altcoins high. This has led to a resurgence in virtually every aspect of the cryptography market as a whole.
At the time of writing, the current market cap of the entire cryptocurrency market is at $1.05 trillion, according to CoinMarketCap.
Cryptographic Wintertime Defrost?
Twitter has been very optimistic since the play crossed its final barrier line. Analysts say that the break on 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 evolution has led to massive sell-offs of short positions in Bitcoin. There are many reasons that this BTC has made a breakthrough of $23K.
#Bitcoin / $BTC
When this finally breaks through, we’ll see a glorious god candle to $30K
Just don’t think today is the day that’s going to happen
be careful and don’t get too greedy yet friends pic.twitter.com/22UMHUNBCv
— K A L E O (@CryptoKaleo) January 20, 2023
Just this few hours ago, the NASDAQ index jumped almost 3% as tech stocks led the market rally. Bitcoin is strongly related to the conventional financial space. This means that if key clues like the nasdaq keep rising, Bitcoin will follow the same path with all cryptocurrencies.
With the broader financial space eyeing an economic soft-landing, bullishness on both the crypto and stock market will continue as the situation improves. December’s Consumer Price Data (CPI) contributed to the optimistic mood.
Image: Crypto Short Stories.
What's the next step for the Alpha exhibit?
Bitcoin’s price movement is expected to slow down a bit in the short term, some analysts said, as the next target will be $30k in the coming weeks or months.
When the writing is done, Bitcoin bulls should try to consolidate over its current support at $22,661 that will be held back by bears in the coming days as $23,328 withstood today's optimism.
Chart: Tradingview
Investors and traders are also expected to monitor consolidation for the time being as market momentum may slow. The halving of bitcoin—an event that would reduce the total supply of the coin in the marketplace—would also exert upward pressure.
BTC total market cap at $442 billion on the weekend chart | Chart: TradingView.comBulls should also keep an eye on what is happening in the traditional financial sector. With the coin’s high correlation with the stock market, Bitcoin’s future will be reliant on the movement of the stock market along with improving macroeconomic trends.
For the time being, bitcoin holders should have enough force to consolidate and target $24.5k and $25k resistances.
Featured image by Helvetia
