Bitcoin price already cleared one of the most-anticipated levels which was $25,000. The cryptocurrency was eventually beaten back down from this level but it has set a precedent for the whole of the crypto market. But more importantly, it seems that the bull market may finally be returning.
Bitcoin Fails To Hold $25,000
On Thursday, following a positive CPI data release, the price of bitcoin rallied from the $22,800 level it was trending at to reaching over $25,000, all in the course of 24 hours. Santiment outlines the events that led to this level as the crypto market finally plunged back into positive sentiment.
📊 A wild first half of February included a #Bitcoin 8-month high, an #SEC lawsuit pertaining to #BUSD, and a massive crowd sentiment shift. Our mid-month February market report covers where we stand, and how to allocate your portfolio optimally. 👍 https://t.co/qzi9MF50ny pic.twitter.com/1RyGWJjzg3
— Santiment (@santimentfeed) February 17, 2023
The retracement in the bitcoin price has now seen the digital asset lose over 3.5% of its value over the last day period. It is currently trending in the high $23,700s which points to strong momentum for the digital asset despite the fall in value.
Likewise, there is also a lot of demand at this level that gives credence to its bullish momentum. The only problem remains how the Fed will continue to tackle the high inflation. If the predicted dovish stance this year were to come to pass, then risk assets such as BTC will no doubt be in luck as demand is expected to explode.
Will BTC Make It Back Above $25,000?
At this time, it is not a matter of if but when the price of bitcoin will actually make it back above $25,000. Indicators are still pointing bullish which means there is still some runaway for the cryptocurrency. At current prices, BTC is still well above its 100-day and 200-day moving averages, putting it in a mid-term bullish position. Moving forward, the cryptocurrency is also trading well above its year-to-date average.
BTC price reaches four-month high | Source: BTCUSD on TradingView.com
Another factor is the fact that the vast majority of bitcoin holders (71%) are currently seeing gains. Now, this can sometimes be bearish since investors would sometimes take out gains during times like this. However, BTC is still holding well above $23,000, meaning only a small percentage are selling.
Lastly, bitcoin boasts one of the highest concentrations (69%) of long-term holders. This willingness to wait for longer periods of time before selling always translates to less supply in the market. And when demand rises, it inevitably triggers a swift upward rally.
At the time of writing, BTC is trending at $23,750, according to data from Coinmarketcap. It is down 3.54% in the last 24 hours and up 8.71% on the seven-day chart.