On the Bitstamp market earlier today, the Bitcoin price reached $21,594, the highest level since September 2022. Bitcoin’s recent climb reflects traders’ growing appetite for risk as they anticipate a shift in the monetary policies of the United States Federal Reserve and other central banks. At the time of writing, Bitcoin is changing hands at $21,198.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin Price Suddenly Jumps to Highest Level Since September
On Tuesday, cryptocurrency prices, such as Bitcoin, rose to their highest levels before FTX’s financial collapse. The bellwether cryptocurrency fell to as low as $15,000 in November, marking the bottom of the previous slump.
With a 23% increase over seven days, BTC had its greatest weekly gain since February 2021. According to Bloomberg, this type of rise is uncommon; it has only occurred nine times in the last five years and typically translates into gains of up to 40% in three months.
With inflation being a deciding factor in the direction of risk assets, traders should keep a careful eye on key macro indicators to forecast future movements. Despite this trend, crypto researchers warn that the digital asset’s underlying fundamentals do not reflect its present valuation.
Katie Stockton of Fairlead Strategies recently cautioned against pursuing this market advance too far, citing overbought circumstances likely later in the week and heavy resistance near the $21,500 level. Bitcoin bear Peter Schiff recently warned that the cryptocurrency was on course to re-enter the $18,000 range.
BTC May Receive Needed Trigger If This Analyst’s Observation Comes True
The recent price increase in BTC has sparked a slew of ideas for how the digital currency will achieve the escape velocity required to propel the next bull run. One recent analysis in this regard was published by prominent crypto analyst The Wolf Of All Streets, who posted on his Twitter page how Bitcoin’s Relative Strength Index (RSI) signal indicates a new bull run.
According to him, the intraday RSI reading is just below 90, and the last time the coin recorded a similar reading over 90, prices first corrected, then soared up to an ATH of more than $68,000 – in November 2021.
“Daily RSI is chilling at just under 90. We have hit 90 a few times, often followed by at correction before a push up and bear div. Last time it was noticeably higher (94) was the 20K top in 2017. Last time it hit 90, price dropped from 40K to 30K before pushing to 65K”, his words stated.
Daily RSI is chilling at just under 90.
We have hit 90 a few times, often followed by at correction before a push up and bear div.
Last time it was noticeably higher (94) was the 20K top in 2017.
Last time it hit 90, price dropped from 40K to 30K before pushing to 65K. pic.twitter.com/BXlWmms3Ml
— The Wolf Of All Streets (@scottmelker) January 17, 2023
The analyst clarified that he was not necessarily forecasting that the peaks are in for this current price run, despite the tweet’s hint that a bull run is beginning.
The analyst clarified that he was not necessarily forecasting that the peaks are in for this current price run, despite the tweet’s hint that a bull run is beginning.
According to information from CoinMarketCap, Bitcoin is presently trading at $21,260.17, up 1.92% over the last 24 hours and more than 23% over the previous seven days. Influential figures in the sector, such as Ben Armstrong (BitBoy Crypto), are growing more upbeat about the industry’s prospects for growth as a result of this price stability.
Armstrong anticipated that Bitcoin would likely reach $25,000 to $30,000 in the upcoming 45 days, but he also noted that the coin would probably see bearish headwinds before the end of the year. Despite widespread optimism, Bitcoin critic Peter Schiff also projected a drop back to $18,000 in his signature style.
Read more:
- Bitcoin Price Soared Past $21.3K For The First Time Since Early November Before Retreating Slightly
- Bitcoin Network Adjusts Difficulty With Every 2,016th Block (About Two Weeks)