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The entire crypto market is in frenzy today regarding Bitcoin. It has been able to bring up its overall capital gain to 5.8% over the last seven days. Bitcoin’s price has now risen above $24,000 when it opened for trade in Hong Kong.
Bitcoin Price Pulls Up above $24,000
Today, Bitcoin’s price has touched about $24,500, at the time of writing this article. This means a staggering increase of about 10.24% from yesterday’s price. Bitcoin’s current market capitalization has also seen an increase of about 10.5% and is currently more than $450 billion. In the last 24 hours, there is almost a 41% increase in its trading volume, which is now at about $37 billion.
Bitcoin Returns After a Steep Spike in Price
Bitcoin’s price in the last two weeks had a bearish sentiment. The price had dropped below $22,000, leaving everyone in the crypto market in a panic mood. Bitcoin has gone on to a steep hike in price, and now has retraced a couple of steps but still soared $24,500. As per Bitcoin’s weekly time frame, the market looks strongly bullish.
The current price broke out after an upward-sloping parallel line. However, it lost some momentum near the closing of January 2023 but picked up slowly after that.
Today, the BTC price has gone above the resistance area of $24,400. BTC’s RSI is indicating a neutral position, with a score of 57.72.
There is too much excitement right around BTC right now. Questions of whether BTC will top the mid-aug top have surfaced in the crypto industry again.
Factors that made BTC price rise
BTC has recovered from the last few week’s low performances. It has now regained remarkable strength in its price and trying to break out from its resistance.
The cryptocurrency market is hugely volatile. Fluctuations in prices are a daily occurrence. Anything that happens in the crypto market, is generally a response to some external actions or contributions. There can be many reasons which contribute to the unpredictable movement of the crypto market. Let’s look at what caused a bullish movement in the BTC market.
- Since BTC’s last all-time high, there was resistance in place. This resistance stayed put for a very long time. The current BTC price broke out of this resistance line and went up.
- According to Coinglass, BTC short-sellers liquidated their holdings. There was a short liquidation worth more than $65 million. This is the catalyst for BTC’s price rise.
- The US retail sales increased by 3% last month. Reports also show that US inflation slightly declining to 6%. This means that the US economy has started to do well, and it gave the Fed more scope to hike the price. This could be another reason to fuel up BTC’s price.
Despite Bitcoin’s high volatility, it is considered the numero uno of the cryptocurrency world. Let’s find out more about that below.
What is Bitcoin?
Bitcoin is the first cryptocurrency to be created. It is a decentralized currency, which allows transactions of digital assets without any form of governance or authority. It uses a cryptographic signature, to record the passing of hands of all its transactions over the bitcoin blockchain. Thus, it holds each record of its movement in it and it is easily verifiable.
It was launched in 2009 by someone named “Satoshi Nakamoto”. It is a pseudonym and to date, no one knows whether it is a single person or a group of developers that gave the world its first cryptocurrency. The Bitcoin blockchain network is like a payment system that allows the movement and storage of digital wealth between interested parties.
Bitcoin’s Price history
At the beginning of 2009, only 50 BTC were in circulation and they cost $0 per coin.
From that humble start, Bitcoin has risen to power and is currently classified as a top-performing asset in terms of returns. In just the last ten years, Bitcoin has surpassed people’s initial expectations and hope, and witnessed remarkable growth in its value.
In the year 2011, Bitcoin’s value rose and matched the US dollar. This huge achievement within the crypto world convinced investors of its stability and solid future. With new investors flushing the crypto market to buy Bitcoin, its price reaches around $30.
In the next few years, Bitcoin struggled to keep up with its price of $1000 per coin. Events like the Mt Gox hack and China’s crypto ban affected the BTC price in 2013.
In the next phase of its development, BTC started to move on an upward trend and rose dramatically by 2017. During that time BTC’s price was around $19,789 per coin.
Things were not good for Bitcoin in the year 2018. BTC spent most of the year in a bearish movement and continued to fall throughout the year. It closed at a mere $3689 in the year 2018 with a drop of more than 70% from where it had started.
The duration between 2018-2020 was a long bear run for the crypto market which affected BTC. However, the BTC price soon spiked by halving its mining capacity to about 6 coins. The price at this time surged to $40,000.
Final words
Bitcoin’s price is extremely volatile. The BTC market had a huge turnaround this week. It regained its value from the last few week’s weak performances and overcame a bearish movement pretty quickly. The BTC is now attempting to move beyond the resistance level. This may be a golden time for investors to sell the token for profit. If this results in any more liquidation, it could bring the price down in the future.
Bitcoin’s 50-day simple moving average is $19,768. Its current price is 24% above its 50-day SMA. Bitcoin’s 200-day simple moving average is $21,136. Its current price of 13.6% is above its 200-day SMA. BTC’s current 14-day RSI score is 70.03%. Which indicates that the asset is overbought.
The next price movement of BTC will determine its future course. If BTC’s price moves beyond the resistance, it could hit $32,000. However, if the opposite happens the price may witness a steep downward fall and hit below $20,000, which could indicate a bearish movement.
Bitcoin is high in value. Because of its high cost, the risk is also high. Thus, investors should be wary before taking any decision and investing their hard-earned money. It is advised to keep an open mind and to take many considerations in mind, before investing.
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