Bitcoin has crossed the $23,000 threshold, once again after retracing yesterday and eyeing a breakout at the $23,300 level. The top cryptocurrency has gained more than 35% since the start of the year. However, concerns remain about declining prices and inflation.
Moreover, crypto analysts are unconvinced that the rally will last after a nearly 14-month bear market. They want to see whether the current rally really did mark a trend change following a slew of debacles in the crypto industry that have shaken the public’s already fragile faith in the industry.
Jeff Dorman, a chief investment officer of Arca, highlighted that Bitcoin’s rebound and a sharp renaissance of tokens from applications and protocols largely left for dead. He believes it’s difficult to predict if the current upsurge was just a bear market rally or if price increases will reflexively spark enough economic activity to justify the price moves. Dorman said most individual applications and protocols, at a micro-level, are still near trough levels of users and activity even if many have surged over 100% in recent weeks. He pointed out that the market is trying to find equilibrium, something between 2022’s dead zone and 2021’s euphoria.
Keith Alan, the co-founder of Material Indicators, said there are signs that this could be the start of the bull. There are also signs that it is a bear market rally. Alan is focused on the data to determine whether a potential breakout is a justifiable move or a higher probability of being a fake-out. He said one macro trigger in particular still needed to enter to call time on bears. Alan outlined that this time it may be different, but he is looking for full candles above the 200 Week MA for a confirmed breakout.
At the time of writing this article, Bitcoin was trading at $23,096 after gaining 1.63% in the last 24 hours. Ethereum gained 0.25% and was changing hands at $1,637.