Bitcoin has crossed the significant $23,000 threshold considered crucial for the cryptocurrency to embark on a recovery path. The largest cryptocurrency by market capitalization has scaled more than 12% in the last two days. It has pushed the price to its highest point since June 13.
At the time of writing this article, Bitcoin was trading at $23,336 up by nearly 5% in the last 24 hours. Ethereum has been following closely and is changing hands at $1,549. Experts say the focus is on the ability of bulls to trigger a continued rally. Moreover, bulls are likely gaining support from the weakening dollar that’s hitting risky assets. Analysts believe that any drop in the US dollar index will result in higher cryptocurrency valuations. But a surge in the index means a likely reversal for Bitcoin.
Some investors are waiting and watching as speculations of Bitcoin’s fakeout make rounds. They say the breach of the $23,000 mark is nothing but a fakeout and the market will plunge to new lows. Trader XM, a Twitter user, posted that BTC price did not retest the range low even as four retests of the range high took place. He says buyers are now stronger than sellers. Another crypto enthusiast says Bitcoin touching the $27,000 – $28,000 mark is imminent. This would be followed by months of consolidation, then a long hibernation.
According to Whalemap, an on-chain data firm, there’s a lack of buying demand between $23,000 and $27,000. It highlighted that $27,100 should be the first resistance on the way up; big gap in supply between current prices and $27,000. However, the short term remains shaky for Bitcoin, especially given the current high inflationary environment.
It cannot be denied that Bitcoin’s momentum has been crucial for powering most assets to trade above their support zone. This drives capital inflows into the market. Experts say the growing buyer confidence needs stability before the bulls establish themselves and push the price further up.