If last week saw many positives for Bitcoin’s short-term price, this week we’ve seen it stalling. Bitcoin is unable to break past the $24,000 mark, sitting just below it. Which isn’t that bad of a thing – the latest peak brought it back to the highest level since last summer. It all points to a current break for the crypto market followed by a bigger expansion later.
The signs across the board remain bullish as we mentioned in our previous article. In the past 24 hours, there’s been a slight drop in price, with Bitcoin currently hovering around $23,750. Long-term holders are still buying BTC which is a good sign. Overall, Bitcoin remains up from the lows of $16,500 at the beginning of the year.
Profit-Taking Kicking In?
The slight drop in price is attributed to profit taking. At least that’s what experts think, but it shouldn’t harm the crypto market in the longer run. There’s been strong resilience on the $24K level, not to even mention $25K. Profit taking is kicking in after a great start to the year, and short-term holders are not the blame. Neither are new investors who are obviously in the crypto industry to make short-term profit.
The great news is that digital assets have outperformed stock markets at the beginning of 2023. The momentum might have stalled a bit. Cryptos and equities have performed correlated past year amid high inflation rates. They’re likely to remain under pressure this year until something drastic happens.
Crypto traders are optimistic that the latest jump is the beginning of the end for the ravaging bear market. It’s been a long crypto winter that almost wrote Bitcoin off. The late-2021 highs of $69,000 are long gone, but Bitcoin is slowly clawing its way up. It’s still far off the 2021 mark, but after a long time of lows, we’re finally seeing a greener market.
In the past week, crypto exchange BitFinex saw long-term holders buy over 18,000 coins in appropriate value of $420 million. The long-term holder supply is going higher and higher, which is a positive signal in the market marked by a 40% increase in price. It’s also a crucial on-chain supply feature of bear market bottoms, which means we’ll finally see the crypto spring we’ve been waiting for.
Must Close the 50-Month Trend Line
The US stock market is currently flat while the US Dollar is struggling to return to full strength. These macro-economic factors have an obvious impact on Bitcoin’s price. What needs to happen is for Bitcoin to close the 50-month moving average. This will increase the volume because at the moment, it doesn’t feel bullish at all.
According to crypto podcaster Scott Melker, Bitcoin’s price is still in no man’s land. It can shoot up to over $25,000, but he doesn’t expect it to hold the line. If it closes the 50-month trend line, though, things might start happening. March has been mentioned as a breakout month, so let’s see what happens in the weeks ahead.