Celebration Alert – Bitcoin Price Resumes Rally Above $20K After Two Months

Bitcoin rises to $21,000 after two months of consolidation.
The market capitalization was recorded at $402.3 billion, up 11% overnight.
There is $15 billion left to reach the total market capitalization of $1 trillion.

The financial year 2022 was highly volatile for the crypto market. Thus, the largest crypto currency bitcoin fell from $48,189 to a two-year low of $15,476. This 64.21% price drop put the total crypto market capitalization below $800 billion due to the major crypto exchange-FTX collapse.

Buyers usually gradually accumulate digital assets, but this rapid recovery has again forced investors to take a bullish outlook on the cryptocurrency. Thus, if the crypto market cap remains at $1 trillion before January ends, crypto winter may soon be back.

Closer Look of Bitcoin Price

Global crypto market capitalization clocked 9% overnight gain at $985 billion. In fact, the market cap of bitcoin rose above $400 billion today, a significant reason behind the positive conditions. Investors are looking forward to $1 trillion in fiscal 2023 to celebrate the rally.

Notably, the largest cryptocurrency bitcoin surged to a two-month high above $21,000 in the intraday trading session. So far, buyers have seen a slight pullback, with speculators placing the bid at $20,916 at the time of writing. Later on, $20K turned into an immediate support and the $21300-$21500 area became an obstacle.

The bullish rally in bitcoin price against USDT began on January 1st, with the latter returning approximately 26% to buyers over the past 14 days. It appears that the market is headed lower if the buyers hold the key round-the-clock level of $20K.

Due to the continuing higher-higher trend, the participation of buyers increases, thus registering a trading volume of $40.7 billion, up by 31% in the last 24-hours. This volatile market pushed the bitcoin price above the 200 EMA line of the EMA Ribbon indicator. On the daily price chart, buyers attempted to overcome the bearish trendline below the 200 EMA, which holds for the last 283 days.

The overbought RSI has reached the 90 level, suggesting a bullish trend in BTC. Similarly, the MACD is extending higher in the positive zone.

Final Thoughts

The price of Bitcoin (BTC) has reached $20,000 in the second week of January. A positive start to the year could soon wipe out the losses of buyers due to the FTX crash.

Support level – 20,000 and $18,000

Resistance level – $22,500 and $25,000

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing