Finally some relatively good news for the crypto market. After falling significantly in the past few months and being stuck in a downward spiral, Bitcoin has finally managed to top the $21K level. It has tested it several times in the past week, but couldn’t break past it. Now, the world’s leading cryptocurrency has finally jumped its biggest obstacle, and seems to be stable in the low-to-mid $21,000 level.
This goes against what we talked about last week, that inflation reports may lead to new dips. It’s a very positive sign, but hold your bulls. It’s great that Bitcoin has climbed this hill, but there are mountains ahead to climb before it gets back to where it needs to be.
Start of a Recovery?
According to on-chain data, stats show that Bitcoin is poised for further price jumps in the next 2 weeks. They might not necessarily be big, but it may very well be the start of a recovery period. It’s just the news everyone was hoping to hear, as things have been locked in a stalemate for over a year. Bitcoin’s price has been in a downtrend and FTX’s demise last November put the market in shambles.
Not just for Bitcoin – its demise destroyed the crypto market in general, with prices dropping faster than ever. Panic sells have further eliminated hope, but as many experts have said, the market will recover. All those crypto naysayers will bite their tongue when they see the prices go up in the following few weeks, which, hopefully, will be the start of something new.
Even if Bitcoin doesn’t recover its 2020 records, it will be good to see the price in an upward trend. Before FTX’s collapse, it was stable at around $21K, eliminating volatility for a positive status-quo. Many believed it was the calm before the storm which would see it doubling in price quickly. That never happened due to macro-economic events on a global scale.
The most positive aspect in the past few months is happening before our eyes. Bitcoin has managed to erase the price losses in the past few months in just a week, and now that it’s back up to $21K again, we expect great things ahead.
Of course, this optimism can quickly be erased if something happens and the price goes back down. But, it’s unlikely for this to happen, and everything is pointing for new price jumps. Maybe they’ll be tiny and maybe Bitcoin doesn’t go up for over $1,000 or more. But, keeping this level is important, and that’s what experts believe will happen.
What’s the reason for the upward price trend? Reports that inflation has peaked are fueling them for sure. That’s good news for everyone, not just crypto investors. After last year started in a negative fashion with the Russia-Ukraine war, the global macro-economic situation was shaken to the core. But, the world is slowly healing. It might take a few years for everything to return to normal, and Bitcoin’s stabilized price may be a sign of better times.