Bitcoin breaks through the $24,000 threshold! What’s behind the bullish rally?

The Bitcoin bull is back and stampeding through the market.

January 9, 2023, marked a turning point for Bitcoin, as it broke free from the shackles of the 200-day Simple Moving Average (SMA) and embarked on an upward journey. Moreover, this crucial level, known to act as both a support and a resistance in times of market shifts, was no match for the cryptocurrency’s bullish determination.

It has reclaimed its dominance with a verdant surge, towering above the important benchmark of $24,000 on the early morning of February 2, 2023. It is currently holding steady at $23,808.58.

Trade or hold?

As Bitcoin approaches certain thresholds, the major players in the market weigh their options, deciding whether to hold onto their BTC or cash in on their gains.

When BTC was wallowing below its 200-day SMA, savvy market players pounced on the opportunity, igniting a fervent buying frenzy.

Furthermore, this accumulation echoes the rally that occurred in 2019 before Bitcoin skyrocketed in 2021.

Greater heights for Bitcoin in 2023

The token has a robust showing in conventional financial markets, a more favorable macroeconomic landscape, and a dramatic uptick in spot trading volume.

Moreso, the U.S. Federal Reserve also gave the trend a boost with a 25 basis point increase, making this year a promising one for Bitcoin. 

Additionally, with the current trend in place, Bitcoin could soar to new heights in the near future, reaching towards the $30,000 mark.

Bullish sentiments

Alex Krüger, a renowned economist, predicts that Bitcoin’s bullish surge may face a minor obstacle before it can continue its upward trajectory. Market participants should be prepared for some resistance at certain levels.