Bitcoin Surges Again
Bitcoin has broken the $25,000 mark for the first time in six months, as the 2023 crypto rally continues. The digital currency rose by as much as 9% on Thursday, bringing its year-to-date gains to north of 50%. This latest surge in Bitcoin comes after this week’s inflation data showed that price pressures in the US economy are both “hot and cold”.
Between Feb. 13-15, $112 million in Bitcoin short positions were liquidated, or $84 million net of long positions, according to crypto derivatives aggregator CoinGlass. “There was a combination of spot market buying and short-liquidations who may have been late to the party and thought going short after CPI was a good long-term macro trade,” said Christopher Newhouse, a crypto options trader for GSR.
Over the two-day period that followed the inflation data published last month, $219 million worth of short positions on Bitcoin were liquidated, or $95 million net of long positions. “Just goes to show how short-term price action driven by momentum and liquidations can overcome any longer-term views people put on,” Newhouse added.
As Bitcoin leads the crypto rally, all eyes are on its 200-week moving average, which is set at the $25,000 price point. The total crypto volume across the market has risen 22% to $1.8 trillion in the last week, according to crypto data aggregator Nomics. However, trading in North America has fallen more than 15% to $64 billion over this period.
“We’ve had an amazingly strong rally … I’m surprised at the velocity of it,” said Michael Novogratz, founder and CEO of Galaxy Digital, at a conference on Wednesday. “When I look at the price action, when I look at the excitement of customers calling that FOMO [fear of missing out] building up, it wouldn’t surprise me if we’re at $30,000 by the end of the quarter,” Novogratz added.
Bitcoin’s latest surge is a reminder of the volatility of the crypto market. While it has seen substantial growth in recent years, it is important to note that it is still a relatively new and unregulated market. As with any investment, it is crucial to conduct thorough research and understand the risks before investing in cryptocurrencies.
Despite the potential risks, Bitcoin and other cryptocurrencies continue to gain popularity and adoption in the mainstream financial world. As more institutional investors and companies invest in the digital currency, its value is likely to continue to rise. However, it is important to exercise caution and take a long-term view when investing in the crypto market.
Technical Analysis of BTC-USD
Bitcoin has experienced a bull run, rising from its bottom of $17,000 to over $25,000 per coin. It is projected that Bitcoin may reach $30,000 per coin, but it will encounter significant resistance at that point. Despite the potential for continued growth and adoption by institutional investors, it is important for investors to remain cautious and take a long-term view when investing in cryptocurrencies, given the volatility of the market, and buy on the dips, and deleverage your position’s risk by selling into some holdings into strength.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
