Bitcoin price’s upward movement of nearly 9% in the last 24 hours indicates that a bull run is likely in the coming week. Bulls finally managed to flip the $19,000 – $20,000 level BTC had been stuck to in the past couple of days.
Bitcoin, as per data from CoinMarketCap, is trading at $21,288. Ethereum is changing hands at $1,734. It’s up by 5.08% in the last 24 hours. The altcoins have also recorded significant gains. Cardano ADA is the biggest winner, up by 7.99% in the last 24 hours, Polygon MATIC gained 4.44%, XRP 4.28%, and Polkadot 3.62%.
Philip Swift, the LookIntoBitcoin creator, says the chart explores BTC’s adoption curve and market cycles to understand how price may behave in medium to long-term time frames. It utilizes multiples of the 350-day moving average of Bitcoin’s price to identify areas of potential resistance to price movements. Swift outlined that specific multiplications of the 350 DMA have been very effective over time at picking out intracycle highs for Bitcoin price. He believes an indicator is an effective tool as it can demonstrate when the market is likely overstretched within the context of Bitcoin’s adoption curve growth and market cycles. According to Bitcoin’s one-week relative strength index (RSI), the digital asset is nearly oversold. But accumulation during the oversold period is also a profitable tactic.
Bitcoin’s price recovery can be attributed to the European Central Bank’s decision to raise eurozone interest rates by a record 75 basis points. This is the second straight rate increase since July. The upward price movement is also linked to the US central bank’s decision to reverse course from monetary tightening to monetary easing in 2023 – lowering interest rates in the process. The Federal Reserve wants to raise rates to above 3.5% in 2023, and not go down below 3% until after 2024.