Bitcoin leads the march of 2023 in the cryptocurrency market, and is the king of cryptocurrencies. As of this writing, BTC is trading at $23,742 which has enabled alpha coins to regain the August 2022 support level of $22,722. This made twitter cipher buzz enjoy like Analysts He went completely bullish on BTC while setting some ridiculous targets like $1.3 million by the end of the year.
However, there are analysts who are very wary of this current rally. The fear, uncertainty, and doubt that now surrounds Bitcoin is how this rally could be perceived Bull trap Which could result in many long position holders creating losses in the medium to long term.
But with the strength of the bullish momentum, BTC could still have enough room to rush towards $25,000.
BTC dollars It should reach 1.3 million by December. I arrived at this number using January’s average gain of 42% MoM.
I will then come back to take profit. Easy math pic.twitter.com/6c3CZ3r7n8
– Pentosh 🐧 (@Pentosh1) January 26, 2023
Short positions have been decimated by previous market movements
CoinGlass Data It shows that a total of $29.64 million of short positions were liquidated among all exchanges as bitcoin breached $23,000. This may seem insignificant compared to the liquidation of the short position on January 14, which was valued at $141 million, but this liquidation may force some bears to continue buying as Bitcoin continues to climb.
As of this writing, the cryptocurrency king is already up 42%, according to Koenjiko. This may continue total economy Somewhat improving.
At $23.7K, Can Bulls Push Bitcoin Price To $25K?
In the short to medium term, the major currency could be in pain as bullish momentum slows. As of this writing, on January 30th, Bitcoin bulls appear to be exhausted. If this slowing momentum continues, the coin could return to its current support at $22,622. This support should be able to hold a strong bearish momentum if it reaches this point.
Investors and traders should also monitor the movement of stocks. This comes from the International Monetary Fund 2022 study Between crypto’s relationship with stocks that shows a strong correlation between the two asset classes. As of the time of writing, major technology stocks such as Apple and AMD have a strong relationship with Bitcoin.
BTC total market cap at $456 billion on the daily chart | Chart: TradingView.com
However, indices such as the S&P 500 and Dow Jones have less correlation. But the relationship between Bitcoin and stocks makes BTC vulnerable to macroeconomic problems. With investors skeptical of the company despite the market rally that started this year, Bitcoin may face volatility as February approaches.
At the moment, $25k appears to be a medium to long term target for bitcoin bulls. Consolidating the gains and securing the currency’s current support will enable investors and traders to eventually reach and possibly break the $25,000 resistance.
Veteran trader and market analyst Peter Brant predicts that Bitcoin will face significant resistance at $25,000 by March, with a subsequent retest of the $18,000 level.
If the bulls maintain this level, the analyst expects another big rally that could lead the bitcoin price closer to $35,000 by July 2023.
Featured image via Wired