After months of sluggish bear market, the cryptocurrency market has decided to start 2023 on a high note. Bitcoin (BTC) continues the days in the green with a new rise of +12% yesterday, dragging all altcoins behind it. When will this increase stop?
The crypto market is exploding
As often, the cryptocurrency market knows how to be unpredictable. After a week of exceptional growth, the price of Bitcoin (BTC) gave us a bullish rally again. The king of cryptocurrencies closed the day yesterday in positive of 5.8% and started this Saturday January 14 by a huge +6% bullish candle in one hour.
The market starts a seventh day in a row in the green, a great first for several months. But above all, Bitcoin hit $21,500 overnighta symbolic level never revisited since the beginning of November and the FTX affair.
Evolution of Bitcoin price in daily timescale
Altcoins obviously followed suit. Solana’s SOL ended the day up more than 31% and posted an increase of 72% this week. As for the Avalanche (AVAX), the timing of the announcement of its partnership with Amazon was excellent since it enabled it to appreciate by +51% in 7 days.
Other assets also display similar, if not even more exceptional, prowess: Decentraland (MANA) at +85%, Aptos (APT) at +106%, Curve (CRV) at +50%, Gala (GALA) at +120%… In short, performance worthy of a bull market.
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Beware of a potential correction
Although this succession of green candles is appreciable, you still have to be careful. The general trend in the cryptocurrency market remains bearish and there is no indication that we have exited the bear market. Even so, such a rise is usually accompanied by a downside correction.
However, the cryptocurrency market knows how to be surprising and difficult to tame. This week, each bullish movement was punctuated by a small sideways movement of a few hours, encouraging traders to short (betting down) before the market goes up again.
As this data from Coinglass shows, the cryptocurrency market saw $721 million in liquidations in 24 hours, a record since November 8, 2022 and the announcement of FTX’s bankruptcy:
Liquidations in the cryptocurrency market
Of course, we don’t have a crystal ball, but it is very likely to see Bitcoin correct this strong bullish movement. In addition, technical analysis shows us that the price is moving under many resistances. In summary, caution is in order.
? Find our technical analysis of Friday, January 13
Vincent Ganne analyzes the crypto markets every day on our Premium group
Sources: TradingView, Coinglass
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Journalist for Cryptoast, I strive to dissect every detail of the exciting world of cryptocurrencies and make it accessible and understandable to as many people as possible.
Lilian Aliaga
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