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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Why Bitcoin Has The Momentum To Run Beyond 23,000

Reynaldo Marquez
Reynaldo Marquez
1 year ago
2 mins read
Bitcoin BTC BTCUSDT

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The price of Bitcoin keeps smashing resistance levels while reclaiming previously lost territory. Unlike other rallies into the current area, this price action might suggest a persistent trend and a new dawn for the industry following months of collapsing companies and bankruptcies. 

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As of this writing, Bitcoin (BTC) trades at $22,800 with sideways movement in the last 24 hours. In the previous week, the cryptocurrency records a 10% profit. Other cryptocurrencies in the top 10 by market capitalization are experiencing similar price action with substantial profits over this period. 

Bitcoin BTC BTCUSDT
BTC’s price with bullish price action on the daily chart. Source: BTCUSDT Tradingview

Is Bitcoin Finally At Bottom Levels?

According to an analyst at Jarvis Labs, the current Bitcoin rally results from a long period of consolidation below the 200-Day Moving Average (MA). This moving average is one of BTC’s most important levels operating as critical support during the bearish cycles. 

As Bitcoin reclaims the 200-day MA at around $19,520, the analyst wants to see a consolidation above this level. The rally might extend if the cryptocurrency can hold above it, pushing BTC into further highs, solidifying “a flip of the 200-day MA from resistance to support.” 

As seen in the chart below, during the 2019 bear market, BTC saw a long consolidation below its 200-day MA before reclaiming these levels later in the year. According to the analyst, the longer the consolidation, the better the improvement for BTC’s overall market structure as other moving averages rise. 

Bitcoin BTC BTCUSDT Chart 2 Jarvis
BTC is rallying after long consolidation periods below the 200-day MA. Source: Jarvis Labs

The above does not imply that Bitcoin will continuously trend to the upside, back to its all-time high of $69,000. Instead, it suggests that BTC’s market health is improving, with the foundation for further gains increasing. 

This new status quo makes any potential decline an opportunity for optimistic investors. The Jarvis Labs analyst wrote: 

(…) And while there is still a reasonably high probability that early January price levels will be revisited again at some point in 2023, there is also a strong piece of data which suggests any such retest would present a prime buying opportunity.

Accumulation Levels Hint At 2019 Like BTC Bottom

In addition to this period of consolidation below the 200-day MA, which hints at a 2019-like bottom, BTC has seen “persistent accumulation.” The image below shows that Bitcoin investors have been “moderately accumulating” (Blue dots in the chart below) more of the cryptocurrency. 

Similar to the 2018-2019 bear market, this accumulation period preceded market rallies. In the coming months, Bitcoin should see more aggressive accumulation (Red dots in the chart below) to support another bullish season. 

Bitcoin BTC BTCUSDT Chart 3
Bitcoin investors are accumulating at a pace similar to the 2019 market bottom. Source: Jarvis Labs

The US Federal Reserve (Fed) remains the biggest obstacle to a Bitcoin rally. The financial institution is hiking interest rates to reduce inflation while hurting financial markets.

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Ethereum Staking Reaches 16.16 million ETH Ahead of Shanghai Upgrade

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Market participants expect the Fed to pivot its monetary policy, but gains in stocks and crypto, combined with sticky inflation, could trigger the opposite. If this happens, optimistic investors might see the buying opportunity presented by the Jarvis Labs analyst. 

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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