We were in the middle of a crypto winter until a few days ago when Bitcoin made a sudden and unexpected jump. Well, it wasn’t the jump that doubles or triples the price, but a jump of over 10% is still significant considering the hardships of the past 6 months or so. The world’s biggest cryptocurrency recovered to $23,000 on Tuesday, instilling hope in many of its fans.
This surprising jump was also met with warnings. Many have said it’s a fake jump before the price hits new lows. But, so far, so good. Bitcoin looks set to secure a daily close above its average which could mean higher prices. The most optimistic experts say that it won’t be unusual to see the price in the $27,000-$32,000 range. It may seem far out of reach for now, but we’ve seen Bitcoin’s volatility go crazier before.
Is It Different This Time?
The price jump was met with widespread acclaim and led many bulls to say “it’s different this time”. But, is it really different? Technical data shows that buyers are now stronger than sellers. This is the truth and has led many to believe that a jump to $27K is imminent. The next major resistance is at $27,100 which could lead to months of consolidation.
Charts have shown lack of buying demand between $23,000 and $27,000. This means that good times might be on the way for Bitcoin fans if the world’s top cryptocurrency manages to fast-track to $27,000. This is the level everyone’s hoping Bitcoin hits, but it could be a struggle on the way up.
The overall cryptocurrency market cap currently stands at $1.055 trillion. Bitcoin’s dominance is 42.1%. The latest price hike was met with a positive response from other cryptocurrencies. Ethereum has been on the up, as have most of the other big and small cryptos.
What needs to happen now is a support retest. There have been a few already and they all showed that Bitcoin may hold its ground. Of course, the possibility of hitting new lows soon is not out of the question. But, it seems that this is the first real major relief for months, and with another pump, reaching over $27,000 is not impossible. Considering how bad things were last week or before it, the green we’re seeing in the market is a sight for sore eyes.
A Weekly Candle Close Will Help?
Right now, a weekly candle close over $22,800 will greatly help Bitcoin’s cause. According to analysts from Rekt Capital, Bitcoin is posting decent efforts to reclaim the 200-week moving average as support. If that happens, we’re going to see a lot more green in the coming weeks.
Experts are adamant that Bitcoin needs a weekly candle close above $22,800 to reclaim the 200-week moving average. While there’s still room for a pullback to $18,000, we’ll wait and see what happens. It’s great to see the prices turn green after a long time, and we’re rooting for a positive weekly candle close.