Key Reasons Why Bitcoin (BTC) Bullish Market Could Be Commencing
Last year was a tough year for virtual digital asset investors. The cryptocurrency exchanges and lenders collapsed like stocks of cards as the bears reigned the marketplace. After 2023’s huge collapse of about 70%, researchers expect that this year could witness bearishness. Interestingly, the start of this year was quite contradictory for the marketplace, particularly BTC.
BTC’s largest virtual digital asset registered a remarkable January, surging nearly 40%. Also, it was a great month for Bitcoin since the end of 2021. Moreover, the value increase eventually stimulated some sureness among traders and investors. However, can it maintain the uptrend?
The Best Month for Bitcoin
According to Coinglass, Bitcoin made remarkable gains last month and registered the best month for the most competitive virtual digital asset in a decade. Recently, it registered a remarkable month in 2013 – the initial year when its value began to increase momentum.
As a result, Bitcoin witnessed an increase of more than 44% at the start of 2013. However, the year’s early stages have been unwelcoming for Bitcoin in the last decade. Let alone 2020 and 2021’s bullish cycle, the initial coin also struggled.
In addition, in January last year, Bitcoin’s price surged by over 16%, which registered the start of a joyous year. Therefore, if you want to capitalize on virtual digital assets this year, it is important to understand the bearish and bullish flags.
At the beginning of this year, Bitcoin was trading near 16,500 dollars, although, regarding the distress of the cryptocurrency winter, BTC made unswerving improvements during the month. Closing the month of January this year, it even exchanged hands at 24,000 dollars. After that, nonetheless, BTC lost some of its value and finished the month of January at around 23,000 dollars.
BTC results defiled all the bear flags as they raised by 40%. Following these events, BTC may cross 25,000 dollars later this month. Although this price is far from BTC’s all-time value high, it is quite surprising than its results last year. It is a critical rally for the asset as it may stir positive shifts in the longer-term trends.
The Impact of Rate Hikes
Large-scale events play a crucial part in how the marketplace trades. It is significant to beware that the FOMC (Feds Open-market Committee) increased interest rates by 0.25% at the beginning of this month. It indicates that the Fed Reserve is seeking to power USD to contain inflation.
Normally an interest rate hike prompts vitality in the stock and digital markets as asset value might depreciate. Following the judgment, Bitcoin value also witnessed volatility at the beginning of this month.
According to data aggregator site CoinMarketCap, Bitcoin’s value shifted between 22,000 dollars to 24,000 in the last seven days. This situation shows that rate hikes enhanced volatility, and BTC maintained its position, one reason behind the optimism in the crypto market.
Crossed Support Floor
BTC has also crossed its vital support level, which is 22,800 dollars. If it persists, bulls will gain control again. It might also facilitate the coin breaking the psychological mark of 25,000 dollars. It indicates that investors may execute bullish positions.
Moreover, Bitcoin experiences a rigid support zone, and the purchasing pressure may soar toward the end of this month. It may propel the asset to maintain its bullishness to explore 25,000 dollars.