No news on the Bitcoin price front, with a similar situation to last week. While that might have sounded like a bad thing months ago, it’s actually a pretty good sign now. After a rough start to the week, the market is in the green again, with slight, but important gains for the world’s biggest cryptocurrency and altcoins too.
On Tuesday, the crypto market took a breather. It was a welcomed pause after a string of price jumps back to consolidated levels. The surge in price at the beginning of 2023 was a welcome sight for everyone, but it seems like the rally has reached its peak. While some are expecting declines which we saw on Monday, things have gone back up in the past couple of days, showing that the market is consolidating.
What Happens Next?
After a very disappointing few years, cryptocurrencies are having a redemption year in 2023. Or that’s what most investors think, considering how the year started. In the long run, great things are expected. In the short run, though, there’s risk of an overbought market. That’s the current condition, with Bitcoin’s price stalling being unable to break over the $24,000 level.
We mean that in the most positive way. The fact that it has managed to climb back to the level it lost a few days ago is a sign that the market is more mature than before. Some experts believe that the price will stall and fall back further, paving the way for a bearish market. Of course, we don’t need to be that pessimistic. As the past week showed us, there’s plenty of room for the price to grow, and we don’t mean record-breaking prices. Those small increments and yo-yo-ing without massive price changes is possibly the thing Bitcoin needs right now.
The recent crypto market rally is almost a replica of the one found in the stock market. As investor sentiment about digital currencies improves, S&P 500 and Dow Jones Industrial Average are seeing positive climbs too. We already know that Bitcoin is much more related to macro-economic factors than previously thought. It’ll move forward in line with stocks and technology, although if it gets high enough, it may break off and move on its own.
No Crypto Winter in Sight
Before the winter began, there was global hysteria of a nuclear winter and cold winter months with no heating due to the problems with gas imports from Russia. That never came to life. Most of Europe has had above-average temperatures this winter, and the whole gas import thing wasn’t as serious as Russia implied. The dead-cold winter didn’t happen, and there was never a crypto winter as well.
Bitcoin has never closed two consecutive years with a drop. After seeing a year to remember, Bitcoin is back up, and all signs are pointing to a bull’s market. No one is sure if we’re in the clear, but it seems like it. One thing’s for sure – the crypto winter is gone, and for now, it’s not looking like it’ll return for a while.