It took a bit of a time, but Bitcoin’s latest surge getting back to $22K and over came faster than expected. Everyone believed that the price will continue falling in the wake of FTX’s implosion, yet it only took a few months. Bitcoin is now back to the level it was before that happened, and even a bit higher.
It took a slight dip to the mid-$22,000 level, but nothing too concerning. The only thing no one can crack is if the rally is for real or another bull trap? Both gold and Bitcoin are up at the start of 2023, but they’re rising for different reasons.
Weaker Dollar and the Fed
One of the world’s most valuable assets has been rising up in price at the start of the year. Gold rises due to the weaker Dollar and as a hedge against inflation. On the other hand, Bitcoin’s price hikes with other high-risk assets. There’s speculation that a Fed pivot will greatly help 2022’s biggest losers, and Bitcoin is high up on that list. Trading volumes are also up, and may suggest another rally.
This has led many experts to be very positive about Bitcoin’s price moving forward. The whole cryptocurrency market might go up in February. It could also spell positive things for the macroeconomic global situation. The FOMC will meet on January 31 and February 1, and it might have a major impact on Bitcoin’s price. Fed’s monetary policies against recessions may also determine Bitcoin’s value this year. Rate hikes might get slower as per latest reports, and it could all turn positive for Bitcoin.
To be honest, it certainly needs it. The cryptocurrency market as a whole needs such a boost. Things have been slow for some time, but as soon as Bitcoin goes up, it could have positive repercussions for the world’s macroeconomic situation. Things have been better than expected, erasing those grim energy and finance predictions for this winter. We’re already halfway through, and Bitcoins’ surprising rally in the past few weeks could be a sign of a blooming spring.
Wave Four of a Five-Wave Movement?
According to some experts and bulls, Bitcoin’s rally could currently be in the fourth wave of a five-wave movement. On the daily RSI scale, Bitcoin is bullish, but overbought. The rising prices show a clear sign of a long-term bullish reversal. There might be a short-term retracement, but that will provide the fuel Bitcoin needs to go even higher.
Bitcoin’s price has been dropping since November 21. At that point, it has fallen to a low of $15,476. Since then, it has struggled to go up, but accelerated the price hike on December 30, just before the new year. The price hike was combined with an increasing RSI movement above 70 that further reinforced the price rises.
The next obstacle would be $21K. In the past week, Bitcoin not only reached it, but climbed over. It initially touched over $23,000 for a day or two, but is now sitting comfortable in the mid $22,000. And that’s a good thing, as it gives it a great base to move forward, possibly to new heights.