Bitcoin (BTC) has recently surged to new highs in 2023, defying previous expectations of a further drop in price. Analysts had anticipated a potential decline to $28,000, presenting a “buy the dip” opportunity. However, Bitcoin has instead experienced a fresh bounce off key support, propelling its price action above its recent trading range.
Michaël van de Poppe, founder and CEO of trading firm Eight, expressed his optimism regarding Bitcoin’s upward trajectory. He encouraged his Twitter followers to seize the opportunity and stated, “I hope your long entries are filled on Bitcoin. Looks quite decent here, and I think we’ll slowly continue grinding to the upside.” Van de Poppe emphasized the significance of breaking and flipping the $30.8K level, which would result in fast upward momentum. Moreover, he highlighted that retesting $30.3K would provide another chance for longs.
Bitcoin’s rise was further supported by Larry Fink, CEO of BlackRock, the largest global asset manager. Fink referred to Bitcoin as an “international asset” and provided a list of its advantages during a live interview. This endorsement carries weight, as BlackRock recently refiled its application to launch the first Bitcoin spot-price exchange-traded fund (ETF) in the United States.
While there is growing confidence in Bitcoin’s upward trend, financial commentator Tedtalksmacro urged caution due to the potential influence of derivatives traders on the short-term market direction. It is important to consider external factors that may impact Bitcoin’s price movement in the near future.
Contrary to concerns, popular trader John Wick dismissed fears surrounding Bitcoin’s extended consolidation near yearly highs. He reassured investors that this phase is nothing to be alarmed about, suggesting that Bitcoin’s current price level is favorable.
Analytics account PlanC provided additional optimism by highlighting Bitcoin’s battle to stay above the two-year exponential moving average (EMA) at $28,500. According to PlanC, this is historically a bullish sign. All previous cycle lows have occurred when Bitcoin was 45% to 55% below the two-year EMA, a milestone that has already been surpassed.
A chart illustrating the “2-Year EMA Multiplier” depicted Bitcoin’s price behavior in relation to its trend lines in previous years. This analysis gives investors a broader perspective and helps them understand the potential for future price movements.
Bitcoin’s recent surge to new highs in 2023 has caught the attention of market participants. Despite initial predictions of a price drop, the current bullish momentum has lifted Bitcoin’s price above its recent trading range. Market analysts and influencers express differing levels of confidence in Bitcoin’s future, making it essential for investors to assess the market carefully. Bitcoin’s status as an international asset and its consolidation near yearly highs contribute to the positive outlook. However, caution is advised due to the potential influence of derivatives traders on short-term market direction. By considering historical patterns and analyzing Bitcoin’s battle to stay above the two-year EMA, investors can make informed decisions regarding their Bitcoin investments.
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