Bitcoin bullish now? The price is stabilizing above the USD 21,000 level

The price of Bitcoin was hit particularly hard last year. First, the coming economic crisis hit the price. After that in November the price of FTX dropped, which gave BTC price another big pullback. So far, the cryptocurrency has failed to stabilize and has only shown very weak positive signs. But now it looks like it wants to switch to a bullish trend. So, how could things continue for the leading cryptocurrency in the coming weeks?

There are movements: Bitcoin is rising

Bitcoin has lost more than 35 percentage points in the past year. It ended 2022 at $15,500, a far cry from the year’s high of $42,700. Since the recent fall in crypto prices, numerous analysts are forecasting Bitcoin and expecting it to bottom out by the end of the year.

If you look at the current price development, you could support this thesis. BTC hovered around the USD 16,000 mark over the months of November and December. There was no significant price movement at the beginning of the year.

However, since last weekend, the bitcoin price is clearly moving in positive territory. Since January 13, it has risen more than 15 percentage points. Today, it is at the $21,227 level after recovering one percentage point.

The trading volume today is valued at $21.9 billion. The market capitalization fell slightly and is currently at 376 billion USD.

Macroeconomic conditions are improving

The reasons for the pleasant increase in the price of Bitcoin can be found mainly in the macroeconomic environment. Since the start of the war in Ukraine and the associated price increases and delivery difficulties, the crypto and stock market has been in deep trouble.

The steadily rising inflation and the high key interest rate kept prices well below their levels. For the time being, however, things seem to be easing up on these details. Inflation is slowing in both the US and Europe.

Why do we only have such hard pumps? There were 5 reasons
1. The macro was strong and SP500 was pumped
2. Binance FUD turned out to be baseless
3. FTX earned 50% of its funds
4. Bitcoin was oversold
5. Many contractions that followed Capo were liquefied and cause short pressure
— James Bull (@MariusCrypt0) January 14, 2023

The FED also announced in November that it now intends to allow the main interest rate to rise much more slowly. In the last increase, it was raised by 0.5 percentage points.

These developments give hope that the stock and crypto market may calm down soon as well. Bitcoin is now showing the first signs of this. For a long time, the coin failed to break out of the key support levels. After increasing, it immediately fell again. It is now heading towards $22,000.

Crypto expert and analyst James Bull added more possible reasons for the boom on Twitter over the weekend. It also assumes that macroeconomic factors will play a major role. In his opinion, other points are the recovery of FTX funds and the stability of the Binance exchange. This was in trouble due to published data, but is now able to prove that it is financially stable.

How sustainable will the current increase be?

Opinions on the future of bitcoin differ greatly. After almost every drop or price drop, analysts make different forecasts on the coin. Some assumed in November last year that the crypto market was dead. Others see Bitcoin at $100,000 levels this year.

A successful bottom formation in the first two weeks of January allowed the rally over the weekend. It remains to be seen how sustainable this will be. On today’s basis, the price of bitcoin remains stable.

The developments become interesting once it breaks the $22,000 mark. If this resistance level is broken, a large number of investors could strike again and the price could continue to rise.

Bitcoin has always had strong fundamental values. The first cryptocurrency is referred to as digital gold by numerous analysts and crypto experts. Bitcoin analyst and supporter Michael Saylor believes that the price of BTC will explode in the coming months.

The Year Under Review 2022 with @PrinceySOV Covers how #Bitcoin i changed my views on time, risk & property, annual highs & lows, securities conflicts at FTX, the ideal model for digital asset regulation, & thoughts on #BTC accepted by nation states. https://t.co/G1taLmqgRJ pic.twitter.com/NsKgagzZTF
— Michael Saylor⚡️ (@saylor) December 22, 2022

In an interview in December, he explained that the FTX advertising crisis was expensive for Bitcoin. He firmly believes that cryptocurrencies are the future and are still in the early stages of development.

Most market observers see a positive development in the last few days. The majority assume that Bitcoin will recover from the past few months or may emerge stronger from the crisis.

However, the last few days should be careful. Despite the positive developments, the price may fall again. Over the past year, the market has repeatedly shown how sensitive crypto prices can be to small or large events. Traders who want more security and stability in their trading should look at Dash 2 Trade. The platform could make deep predictions about Bitcoin in the future.

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