Can Bitcoin (BTC) continue the bullish rally for the entire 2023?

Bitcoin dominates the crypto market due to its recognition as the first and largest cryptocurrency. With a large user base and a high level of security, Bitcoin has established itself as a reliable investment option in the digital currency world. It has a strong network effect; the more people use it, the more valuable it becomes. Bitcoin’s decentralization and transparency increase its popularity, giving users control over their transactions without any interference from third-party intermediaries.

Furthermore, Bitcoin has a history of stability and growth that has inspired confidence among investors. Overall, its reputation, security, and wide acceptance make it the leading player in the cryptocurrency market, giving it a significant edge over other digital currencies.

Bitcoin’s value has a direct impact on other cryptocurrencies in the market. Its dominance in the market makes it a benchmark for other cryptocurrencies, and its price movements can often trigger similar movements in other coins. When Bitcoin’s value increases, it is often accompanied by an increase in the value of other cryptocurrencies, known as the “Altcoin Rally.”

BTC now remains just marginally short of its $5000 billion market capitalization, which could allow buyers to take part in the next leg of movement towards $40,000. BTC’s value is a crucial factor in the cryptocurrency market. Hence, its impact on other cryptocurrencies cannot be ignored.

BITCOIN PRICE ANALYSIS

Bitcoin could rally up from $16000 to $22000 levels easily. However, making a strong single-sided rally allowed the perfect scenario for sellers to book profits which created hindrance in the further growth of BTC towards the $25,000 mark. The outlook for BTC has greatly improved recently, with the token headed towards upper values. Read our long-term Bitcoin price prediction to know how high the token will reach in the coming years!

The breakout price rally made in the early hours of February 02 was quickly erased by selling activity in the second half of the day. Despite reaching nearly $24000, BTC faces a stiff decline in its MACD indicator, all while its RSI continues in the overbought ranges. 

BTC transactional volumes have been in the higher ranges without facing any complications or difficulty. Although, the MACD generating a bearish crossover pattern could allow sellers the chink in BTC’s armor to downplay its recent gains.

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Immediate support is available for buyers near $22,269 levels while the 200 EMA curve placed near $21000 is gradually starting to move in a parabolic pattern confirming a change in sentiment even on the long-term charts. On weekly charts, breaching $25,000 would be a critical factor pushing Bitcoin towards previous critical resistance and psychological levels such as $40,000 and $50,000.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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