Bitcoin – the enormous cryptocurrency in market capitalization, has skyrocketed in value, as its price reached a 2-month high of over 21 000 USD today. May this lead to the beginning of a new bull market?
Prices in the cryptocurrency market have been fluctuating for the past few months. The bearish run, known as the crypto winter, has led to a more than 60% drop in the value of digital crypto assets. After a long and unsuccessful year for the crypto industry, the beginning of 2023 has brought back hope for many investors. During the past week, the price of the biggest cryptocurrency in market capitalization destroyed its resistance level of 18,000$.
The new week starts with even better news, as Bitcoin breached 21 000$, an indicator many experts believe may lead to the end of the crypto winter. Currently sitting around 20 850$, the altcoin managed to break out of the massive downturn caused by the recent FTX collapse. Even though the price has steadily been moving in a positive direction, many traders are uncertain if the altcoin will manage to break through the new resistance level set at 23 000$.
Why is Bitcoin’s Latest Price Jump Important?
Bitcoin is not the only winner, as the global cryptocurrency market cap has once again surpassed 1 Trillion, with BTC holding around 40% percent of it as its market cap is currently sitting at 400 billion. Ethereum, with its 188 billion market cap is another close contender for the first place, as its price bounced over 20% for the past week. Yet, BTC and ETH are far from the biggest gainers on the market this week. Major cryptocurrencies like Avalanche and Aave racked up more than 30% gains, yet the undisputed winner is Solana (SOL), with a price jump of over 63%.
The recent rally in the price of Bitcoin may also indicate that 2023 may be the beginning of the tokenization of the world. In fact, Larry Fink, the CEO of BlackRock, announced in an interview for CNBC that his company BlackRock is looking to expand with the help of cryptocurrency-powered technology.
“This is why we are focusing on the whole idea of blockchain for securities. I look forward to the day when we can tokenize stocks and bonds so that every stock and every bond we can identify immediately who is the beneficial owner. That is why we are working on it, so that every beneficial owner, from an individual to a company, can vote…” the influential businessman said.
This announcement may bring even more attention to the altcoin in the near future. With inflation and unemployment rates dropping down, it will be interesting to see how investors will act upon this bullish announcement.
How High Can it Go – Bitcoin Price Prediction for 2023
Trading analysis results indicate that Bitcoin has broken above the falling wedge pattern in one day. The price of Bitcoin has surpassed the 21 000$ levels, yet the resistance line sits at $21 000, which would need to be retested for BTC to reach the expected 23 000 mark. The Relative Strength Index suggests that the asset is oversold, which means that a correction should be happening any time soon.
Following the psychology of the market cycle we are currently in, Bitcoin went from a euphoric state at the end of 2021, when it reached its all-time high peak of over 65 000$, to an anger state when the price dropped below 16 000. Now the big question is if this is the beginning of the bull market or we have headed into a depression. While it is hard to determine the correct answer, experts believe that the market is still in the anger stage. Although this does not sound like great news, many investors still have time to hop on the train before the market supposedly explodes.
Of course, nothing is assertive in the market right now, and Bitcoin may surprise us by meeting many traders’ expectations and reaching 50k by the end of the year. No matter what the case is, investors should closely follow price movements and official announcements to stay relevant in the market.
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