Bitcoin (BTC) extended its 2023 rally over the weekend, surpassing $23,000 over the weekend for the first time since August. However, market analysts are divided on the outlook for the world’s largest digital currency.
(BTC) up to $23,000
Still reeling from the euphoria of bitcoin (BTC) surpassing $20,000, the world’s largest cryptocurrency surged more than 8% on Saturday to trade as high as $23,282 for the first time since mid-August 2022.
Although Bitcoin has rebounded slightly to trade at $22,871 since the start of 2023, it has gained 37.67%. This bullish momentum has seen the global cryptocurrency market cap rise above $1 billion for the first time in five months.
Year-to-date price chart for Bitcoin (BTC). Source: CoinMarketCap
Analysts are divided on BTC Rally
Bitcoin’s sharp rise has left many analysts divided on the actual state of the market. While everything seems to point to a bull market, some analysts believe it is just a bull trap to catch investors off guard.
One of them is the famous trader BitcoinAgile, who believes that BTC could drop to $12K after the trap. Analyst and trader “il Capo Of Crypto” also asserts that the rally is the “biggest bull trap”.
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I’ve been checking the charts all this time, avoiding the noise from Twitter. The way the up move happens, the way the htf resistance is tested…it looks obviously manipulated, no real demand, and again, the biggest bull trap I’ve ever seen. But they won’t surround me.
– il Capo Of Crypto (@CryptoCapo_) January 21, 2023
Pessimistic opinions aside, the bulls responded with their observations of how much prices had moved off the ground. Popular crypto trader PlanB wrote on Twitter:
Wonderful! Bitcoin price is above the short term holder (STH) and realized price. And.. STH, I realized and the price of the whole realized 2Y is increasing again. Further evidence that the bear is over and the bull market has begun. More explanation of this chart in this video: https://t.co/NgzaiQ81Zw pic.twitter.com/z3UrePtoRO
– PlanB (@$100 Trillion) January 22, 2023
What do the indicators say about the range?
Aside from personal expectations, what do metrics and indicators say about Bitcoin’s rally? Bitcoin open interest (the value of all open BTC derivative positions) and the estimated leverage ratio point to a longer bullish trend.
Also, Bitcoin price broke above Bitcoin’s 200-day Exponential Moving Average (Exponential Moving Average). With bitcoin holding above this level, it could surge to $25,000. However, if Bitcoin breaks below the 200-day EMA, we could see a retest of $19.5K.
on the flip side
- Bitcoin is likely to consolidate before testing the next crucial resistance or support area.
Why should you bother
All predictions expressed above are personal views of the Bitcoin price and should not be used as a guarantee for making decisions, due to the unpredictability of the cryptocurrency markets.
Read about Bitcoin’s previous rally below:
Bitcoin Holds Over $21,000 Three Days in a Row: Dawn of a Bull Market?
Bitcoin could also see more use. Read below:
El Salvador’s Bitcoin Bund Volcano Bill Gained Approval