Next week could ignite another Bitcoin rally; Here’s what you should know
Bitcoin (BTC) seems to be doing well, trying to put behind the uncertainty that came from the renewed regulatory scrutiny of the crypto sector. The uncertainty appeared to nullify the 2023 gains, with the asset facing increased threats to retest $20,000.
However, the flagship crypto aims to hold above $25,000, a position that remains the center of attention ahead of the upcoming week of 20-27. February. Based on historical data and the asset’s recent price movement, investors can expect possible success for the asset in the coming days.
In particular, historical data shared by Bitcoin analyst by Twitter pseudonym Share moneyL indicates that Bitcoin has probably formed a basis for the next stage up. According to the analysis, Bitcoin has historically rallied after undergoing a capitulation phase.
The capitulation has occurred after registering a peak in the price. Between the two stages, Bitcoin has experienced ups and downs in its price trajectory. Along these lines, the 2022 bear market formed the last Bitcoin capitulation level, and the 2023 gains point to a possible rally.
Based on Share moneyL analysis, a popular Bitcoin commentator under the pseudonym Bitcoin Archive on Twitter pointed out that the maiden cryptocurrency’s price movement in 2023 replicates the 2019 trajectory. Notably, after forming a neckline in early 2019, the position formed the foundation that culminated in the Bitcoin rally towards the 2021 bull market.
Bitcoin price analysis
As it stands, Bitcoin has failed to hold above $25,000 after briefly regaining that level on February 19. At press time, Bitcoin was valued at $24,730 with daily gains of around 0.4%. However, on the weekly chart, Bitcoin is up over 10%.
At the same time, Bitcoin continues to express bullish sentiment on the technical analysis front, with one-day gauges on TradingView recommends accumulation of assets. A summary of the gauges stands for “buy” at 15, while the moving average is for “strong buy” sentiment at 13.
What next for Bitcoin?
With Bitcoin hinting at a bullish future, the asset’s current sentiment remains uncertain, particularly its inability to hold above $25,000.
While looking at Bitcoin’s potential in the coming days, it’s worth noting that the asset traded at $25,000, marking an eight-month high as investors flocked to risky digital assets, despite regulatory pressure.
At the same time, economic indicators suggest that the Federal Reserve may raise interest rates, and Bitcoin has continued to gain momentum to stay above $24,000. In addition, Bitcoin appears to be benefiting from the fact that the US dollar experienced a slight fall, which has resulted in author Robert Kiyosaki estimating that BTC could be valued at $500,000 by 2025.
With Bitcoin making it to Finbold’s list of cryptocurrencies to watch for the week of February 20, other technical indicators show that the asset has hit the bull market.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
