Feb 17, 2023
Bitcoin Soars to Six-Month Highs as Bulls Rejoice
The price of Bitcoin (BTC) is on the rise on February 16th, hitting a six-month high of $24,895 as a combination of positive factors come together to support the cryptocurrency. Data from Cointelegraph Markets Pro and TradingView shows that the cryptocurrency has gained almost 10% in the past 24 hours, and is now at its highest level since mid-August 2022.
The recent rally is the result of a number of macroeconomic tailwinds, primarily from the United States, which have helped to improve sentiment across the risk asset market. This is further supported by the US Consumer Price Index (CPI) which, despite a reshuffle in its calculation, mostly conformed to expectations. Retail sales and manufacturing numbers have also contributed to the optimism, with investors providing more “dry powder” for risk trades and sending crypto higher.
The current sentiment is focused on whether the good news will continue, and whether it can sustain the latest innings of Bitcoin’s blistering 2023 comeback. Keith Alan, co-founder of monitoring resource Material Indicators, commented that “after a stampede for 10%, BTC bulls ran into a wall”, and that “a hot Jobless Report could strengthen another attempt”.
Interestingly, Bitcoin is currently rising in tandem with the US dollar, a situation which is traditionally negatively correlated. This is due to short-term treasury yields moving higher, resulting in capital flowing into the US, and Bitcoin going higher because of increasing worldwide liquidity.
However, some traders are concerned that the current out-of-character status quo may not last. Mark Cullen, a trader, warned that “markets are starting to bifurcate, with Tradfi & $DXY not supporting the move yesterday”, and questioned “if this move wipes out both sides 1st?”
Whales have been taking advantage of the current market conditions, with bid and ask liquidity moving up and down the order book, taking spot price with it. Material Indicators commented that whales were “laddering asks up to $28k”, and that “if they clear $25k they can exploit the upside illiquidity fast.”
Cointelegraph contributor Michaël van de Poppe believes that “corrections are relatively short-lived in an upwards trending market”, and that “if $25K is broken, we’ll continue towards $30-35K for Bitcoin.”
The current rally in Bitcoin is the result of a combination of macroeconomic tailwinds from the US, and increased liquidity from whales. The sentiment is focused on whether the good news will continue, and whether it can sustain the latest innings of Bitcoin’s blistering 2023 comeback. In order to take advantage of the current market conditions, traders need to be aware of the order book activity and be able to identify when whales are laddering asks up. If $25K is broken, the cryptocurrency could continue to rise towards $30-35K.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
