Bitcoin (BTC) appears to be holding up well, trying to move past the uncertainty stemming from the renewed regulatory scrutiny of the crypto sector. In fact, the uncertainty appeared to erase 2023’s gains as the asset increasingly faced the risk of retesting $20,000.
However, the flagship crypto is aiming to hold firmly above $25,000, a position that will be the focus of attention ahead of the upcoming week of Feb. 20-27. Based on historical data and the asset’s recent price movement, investors can expect possible fortune for the asset in the coming days.
In particular, historical data shared by the Bitcoin analyst under the Twitter pseudonym StockmoneyL shows that Bitcoin has likely laid a foundation for the next leg up. According to the analysis, Bitcoin has historically rallied after going through a capitulation phase.
The capitulation came after recording a price spike. Between the two phases, Bitcoin has seen ups and downs in its price history. Along this line, the 2022 bear market formed the last bitcoin capitulation level, and the 2023 gains point to a potential rally.
Bitcoin price analysis chart. Source: TradingView
Based on StockmoneyL’s analysis, a popular Bitcoin commenter using the pseudonym Bitcoin Archive on Twitter pointed out that the price movement of the first cryptocurrency in 2023 repeats the development in 2019. Notably, after forming a neckline in early 2019, the position laid the foundation that culminated in Bitcoin’s rally towards the 2021 bull market.
Bitcoin price analysis
As of today, Bitcoin failed to sustain above $25,000 after briefly reclaiming levels on Feb. 19. At press time, Bitcoin is valued at $24,730 with daily gains of around 0.4%. However, on the weekly chart, Bitcoin is up over 10%.
Bitcoin seven-day price chart. Source: Finbold
At the same time, Bitcoin continues to express bullish sentiment on the technical analysis front, with one-day indicators on TradingView recommending asset accumulation. A summary of the gauges stands for “buy” at 15, while moving averages stand for “strong buy” sentiment at 13.
Technical Bitcoin Analysis. Source: TradingView
What’s Next for Bitcoin?
With Bitcoin hinting at a bullish future, the asset’s current sentiment remains uncertain, specifically its inability to sustain above $25,000.
Looking at Bitcoin’s potential in the coming days, it is worth noting that asset trading marked an eight-month high at $25,000 as investors flocked to risky digital assets despite regulatory pressure.
At the same time, economic indicators are suggesting that the Federal Reserve may hike interest rates, and Bitcoin has continued to gain momentum to hold above $24,000. Additionally, Bitcoin appears to be benefiting as the US dollar saw a slight decline, leading author Robert Kiyosaki to predict that BTC could be worth $500,000 by 2025.
After bitcoin made it onto Finbold’s list of cryptocurrencies in the week of February 20, other technical indicators show that the asset has hit the bull market cross.
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