The favorable development of external factors like the loss of interest in government bonds suggests the price of Bitcoin might increase. If the value of BTC breaks out of the previous stabilization, it might achieve more significant increases again.
The price of Bitcoin (BTC) recently rose above USD 20,000 after moving to neither the upside nor the downside for several weeks. The latest price developments in the market suggest a bullish breakout in the coming days before the start of a rally.
The Price of Bitcoin over the Last Few Days
Following a long period without significant gains, the value of Bitcoin recently rose above USD 20,000. The price exceeded the range from USD 19,000 to USD 20,000, where it had moved over the last few weeks.
The value of Bitcoin has been closer to the USD 19,000 level over the last few days. After breaking above USD 20,300 in just 1 to 2 hours, it remained above the USD 20,000 mark.
The Price of Bitcoin Might Rise in the Short Term
Over the last few weeks, the price of Bitcoin has been almost exclusively between USD 19,000 and USD 20,000. Many investors lost interest in the crypto market due to that stability and the dullness of the market. However, a lengthy stabilization period in that narrow corridor suggests that a significant price move might occur soon.
Since external factors develop favorably for Bitcoin and other cryptocurrencies, nobody should rule out an increase. Investors are losing interest in government bonds again but might feel attracted to risky investments like cryptocurrencies. Besides, the value of crypto assets stabilized despite the drop in stock prices.
The Price of Bitcoin Might Achieve a Significant Rise Again
Over the last few weeks, the bearish market has caused the value of cryptocurrencies to stabilize. Six months after prices increased massively, they have reached a phase where they remain at a low level without further losses. Therefore, Bitcoin may have reached its bottom.
If the price of Bitcoin breaks out of the previous stabilization, it might achieve more significant price increases again. After the stabilization phase in the bearish market, prices rose again following the last Bitcoin cycle. In 2019, BTC increased three times after bottoming out.
Where the Price of Bitcoin Will Head in 2022
Over the following weeks, the price of Bitcoin might rise if it breaks above its current resistance level. When it enters the volatile phase again, the course of Bitcoin might become quite bullish again.
There must be a clear breakout in the price for a move toward USD 30,000 to be realistic this year. However, Bitcoin has recently bounced off the top of the resistance repeatedly, suggesting an exciting outlook over the next few days.
It Is Worth Investing in Bitcoin in the Long and Medium Term
The value of Bitcoin might rise further over the coming weeks, but it should be at the low end in this bearish market. Therefore, investing in Bitcoin should be profitable, at least in the medium to long term. In 2023, there might be considerable increases that exceed current price ranges.
Meanwhile, Bitcoin is trading at around USD 20,378 and has accumulated 5.6% over the last 24 hours. While its daily trading volume is above USD 47.03 billion, its market capitalization is about USD 391.06 billion, according to CoinGecko.
By Alexander Salazar
