backlash – The price of Bitcoin (BTC) temporarily returns to $24,000. For this analyst, the bullish impulse is not enough to prove the strength of the cryptocurrency rally. This trader also believes that this month may not be very stimulating for Bitcoin.
After $24,000 Declining Momentum for Bitcoin Price?
Bitcoin price rises to $24,239 on Bitfinex today, February 2, 2023, reaching a new high in around five months. Cryptocurrency trades at $23,481 at the time of writing this article. Its price is currently recording a daily loss of 1.02%.
The price of Bitcoin is therefore making a foray above $24,000, after the US Federal Reserve (FED) announced a 25 basis point hike in the federal funds rate, in line with client expectations.
Despite this bullish momentum, some traders and analysts still invite the markets to caution. Yuya Hasegawa, analyst at Japanese crypto exchange Bitbank, said that “the bitcoin rally remains precarious”.
In particular, he pointed to the fact that Bitcoin price “failed to close above $24,000” yesterday, 1er February 2023. The analyst also added that the “momentum” of the cryptocurrency “ seems to be on the decline “.
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Markets will have to wait until March to see the macro bullish breakout
Trader Rekt Capital gave an outlook for Bitcoin price on a longer timeframe today, sharing his insights on the breaking point of the current macro downtrend. Based on historical data, this breakout is would produce around the 366 to 396 days before the next halving.
But Bitcoin is still currently at 425 days of the next block reward halving. This break should thus take place “as soon as possible”, in the month of March orapril.
Always referring to past patterns that have similarities with the current situation, Rekt Capital precise that “if history repeats itself”, the month preceding this breakout “tends to be slow “. February would therefore risk being little “exciting” for the Bitcoin price.
For the month of February, this breakout point is located approximately at $26,500. For the next month, the breakout would occur around the $24,600.
The FED has given crypto markets a fever, but markets need to watch out for the backlash. Bitcoin is about to retest the major resistance at $23,400 yet again.
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