Bitcoin (BTC) has been on a tear in recent weeks, rallying to a five-month high of $23,000, with traders and investors across the globe looking to capitalize on the digital asset’s volatility. The price of the leading cryptocurrency has been volatile since the beginning of 2021, when it skyrocketed to an all-time high of $68,906.48 in November 2021, before slipping to its November 2022 low of $15,516.53.
While Bitcoin’s price is near the range high, the entire range between $23,500 and $24,500 is a significant resistance area.[0] Analysts are expecting Bitcoin to push past this range and go straight to $28,100 if it breaches the $19,000 support level.[1]
On-chain data suggests that the annual rate of change in the Bitcoin Puell Multiple has exited the bear market zone, a sign that a bull rally may be here.[2] The “Puell Multiple” is a gauge which calculates the ratio of daily Bitcoin mining revenue (in USD) to its 365-day moving average (MA).[3] If the value of this measurement surpasses 1, miners are currently making more money than the annual mean.[2]
The Bitcoin Fear and Greed index has also flashed “greed” for the first time in 10 months, indicating the improving market sentiment following the most recent rally in BTC’s price.[4]
In terms of other crypto assets, Ethereum (ETH) had a tough 2022, but has recovered 83.3% from its 2022 low.[5] Ethereum shifted from a “Proof-of-work” to a “Proof-of-stake” protocol, which has helped the crypto with the second highest market cap outperform Bitcoin since the most recent lows.[5]
Meanwhile, the electric car maker Tesla (TSLA) revealed in its latest earnings report that it has not purchased nor sold any Bitcoin in the fourth quarter for the second consecutive quarter.[6] The value of its digital assets totaled $184 million at the end of the quarter, a decrease from the $218 million at the end of the third quarter.[7]
Cryptocurrency investors should still take caution when investing in digital assets in 2023, as Bitcoin and other cryptocurrencies are still subject to volatile movements in the market.[8]
0. “Bitcoin bears in disbelief as BTC targets $28,000” Finbold – Finance in Bold, 26 Jan. 2023, https://finbold.com/bitcoin-bears-in-disbelief-as-btc-targets-28000/
1. “Price analysis 1/25: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT, LTC, AVAX” Cointelegraph, 25 Jan. 2023, https://cointelegraph.com/news/price-analysis-1-25-btc-eth-bnb-xrp-ada-doge-matic-dot-ltc-avax
2. “Bitcoin Puell Multiple Starts To Leave Bear Market Zone, Bull Rally Here?” Geeks World Wide, 23 Jan. 2023, https://thegww.com/bitcoin-puell-multiple-starts-to-leave-bear-market-zone-bull-rally-here
3. “Bitcoin Puell Multiple Leaves Bear Zone, Bull Rally Here?” newsbtc.com, 23 Jan. 2023, https://newsbtc.com/news/bitcoin/bitcoin-puell-multiple-bear-bull-rally/
4. “Bitcoin ($BTC) Fear and Greed Index Shows ‘Greed’ for First Time in Nearly a Year” CryptoGlobe, 28 Jan. 2023, https://www.cryptoglobe.com/latest/2023/01/bitcoin-btc-fear-and-greed-index-shows-greed-for-first-time-in-nearly-a-year/
5. “Crypto Recovery In January 2022” Barchart, 23 Jan. 2023, https://www.barchart.com/story/news/13526467/crypto-recovery-in-january-2022
6. “Why bitcoin is up 40% in January despite crypto industry carnage” MarketWatch, 26 Jan. 2023, https://www.marketwatch.com/story/why-bitcoin-is-up-40-in-january-despite-crypto-industry-carnage-can-the-rally-continue-11674762968
7. “Bitcoin Spikes To $23K But Analyst Sees Drag From Tech Selloff” Benzinga, 26 Jan. 2023, https://www.benzinga.com/markets/cryptocurrency/23/01/30579619/bitcoin-ethereum-dogecoin-spike-analyst-warns-apex-crypto-could-dip-back-to-20k-if-tech-se
8. “Bitcoin’s 2023 rally gathers steam as cryptocurrency briefly tops $23,000” CNBC, 23 Jan. 2023, https://www.cnbc.com/2023/01/23/bitcoin-2023-rally-gathers-steam-as-cryptocurrency-tops-23000-.html