Price Analysis

Bitcoin Price Trapped at Crucial Crossroads Despite Weekend’s Surge Above $17k: Analyst

Author: Sohrab Khawas

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    Bitcoin’s (BTC) price has surged to a three-week high after Sunday’s breakout above $17k. A continued crypto bullish sentiment could push Bitcoin price towards last December’s high of around $18,300. However, the tension in the Bitcoin and cryptocurrency market remains high in the coming weeks with DCG insolvency fears.

    Additionally, the Fed chair Jerome Powell is expected to speak on key monetary policies tomorrow and Consumer Price Index (CPI) data is expected later this week. 

    Nonetheless, the crypto market has received bullish sentiment from several analysts supported by key on-chain data. For instance, Glass node data on open futures contracts show more calls than put – buying and selling of underlying assets respectively –  on Bitcoin trades in 2023 Q1. Notably, the Bitcoin open futures market is used as a liquidity and volatility indicator on the spot prices.

    As the FTX and Alameda debacle continues, analysts believe crypto prices have already factored in these events. Thus, the ongoing fiasco between Digital Currency Group and Gemini Earn customers could be signaling the end of the 2022 bear market. 

    Closer Look at Bitcoin Price Action

    According to CryptoQuant’s on-chain analyst VentureFounder, the Bitcoin market is at a crucial crossroads that could lead to a 20 percent outburst. Having retested the $16.3k support for the past two months, VentureFounder believes Bitcoin price is on the precipice of a major breakout.

    “Bitcoin has been stuck between $16k and $18.5k for 2 months now. Watch this range very very carefully, a break from either direction can bring 20% volatility, which could happen soon. A definitive break of $16k could see $13k, make $18.5k support we can see $22.5k,” the analyst noted.

    After outlining fundamental points on Bitcoin and Ethereum including inflationary data and historical analysis, Zhuoer concluded the latter will be out of the bear market earlier than the former.

    Meanwhile, the global cryptocurrency market cap today is $887 Billion, up approximately 3.3 percent in the last 24 hours. Bitcoin has a market dominance of approximately 37.4 percent while Ethereum follows with 17.9 percent.

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