Backlash – Bitcoin (BTC) price tentatively recovers to $24,000. For this analyst, bullish momentum 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 the $24,000 drop in the price of bitcoin?
Today, February 2, 2023, the price of bitcoin on Bitfinex rose to $24,239, hitting a new high in about five months. The cryptocurrency is trading at $23,481 at the time of writing. Its price is currently recording a daily loss of 1.02%.
Thus, the price of bitcoin rises above $24,000 after the US Federal Reserve (Fed) announced a 25 basis point increase in the federal funds rate, in line with customer expectations.
Despite this upward momentum, some traders and analysts are still urging the markets to be cautious. Yuya Hasegawa, an analyst at Japanese cryptocurrency exchange Bitbank, said that “Bitcoin’s rally remains unreliable.”
In particular, he pointed to the fact that yesterday, February 1, 2023, the price of bitcoin “failed to close above $24,000.” The analyst also added that the “momentum” of the cryptocurrency “seems to be on the wane.”
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Markets will have to wait until March to see a macro-bullish breakout
Trader Rekt Capital today gave a bitcoin price prediction for a longer period of time, sharing his understanding of the breakout point of the current macroeconomic trend. Based on historical data, this breakthrough will occur approximately 366-396 days before the next halving.
Bitcoin is currently still 425 days away from the next block reward halving. Thus, this gap should occur “as soon as possible”, in March or April.
Still citing past patterns that show similarities to the current situation, Rekt Capital notes that “if history repeats itself,” the month leading up to this breakout “tends to be slow.” As such, February is in danger of not being very “exciting” for the price of bitcoin.
In February, this breakout point is around $26,500. Next month, a breakout will occur near $24,600.
The Fed has caused a fever in the crypto markets, but the markets need to watch the backlash. Bitcoin is about to test the main resistance again at $23,400.
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