The Bitcoin price has skyrocketed again in the last few hours. The price surprisingly rose again and passed the $24,000 mark.
In the past few days, the course of Bitcoin has taken a slight setback. The price dropped from $23,000 to $21,500 a few days ago. These losses came after a period where Bitcoin tried but failed to scale above the $24,000 level.
However, on days 1-2, a bullish trend reversal was seen again. After breaking above $22,000, it has continued to rise for the past few hours. A massive surge pushed the price of Bitcoin above $23,000 and then even back above the $24,000 mark.
What Triggered the Rebound?
With the fall of the last few days, our fears that the Bitcoin price could see a correction after the bullish January were confirmed. However, with the rallies of the last 1-2 days, the price has now reached a high in 2023.
Actually, the increase seems quite strange. Because the US dollar index went up again recently, which would actually mean a falling rate. We are also seeing an increase in SEC investigations into various crypto companies. The macro data is more in favor of a bear market.
As such, many analysts anticipate that it could be a “catch”. Whales could bet on a drop in price and thus earn the money that bullish investors are now pumping into the market.
It is worth remembering that last month Octavio Pacheco, a cryptocurrency operator, pointed out the following:
“When the economic indicators favored the stabilization of prices, short positions were closed at key levels. While volume was lower, volatility grew, causing massive outflows aggravated by bankruptcies and crashes. But the outlook is propitious again.”
For Pacheco, the biggest risk from bitcoin’s recent rise is that the world’s largest economy slips into recession while the Fed remains tight to cool the economy. “This scenario is possible and constitutes the main pressure factor for risk,” he added.
Will Bitcoin Go Up to $30,000, or Down to $20,000?
The increase continues towards $25,000. Actually, it could be a serious bullfight. In this case, it is even possible that the price of Bitcoin could rise to the $30,000 mark in the first quarter of 2023. However, many investors are still very doubtful due to the macro data.
If there is a bull trap, the price could quickly drop toward the $20,000 mark. Expect to see one more major correction, before the market finally turns sustained bullish.
“Bitcoin looks to build on its rally and finds support at the $20,000 level, 2017 high. It was vital to get past it, but will it hold? If it succeeds, trading the long bias to $25,250 is possible. The $29,000 level would be another strong resistance,” explains a note from financial trader ATFX, published last month.
By Audy Castaneda
