Bitcoin has made a stellar start to the year, rallying from $16,500 to over $28,000, closing the long-awaited CME gap with minimal pullbacks or signs of weakness. In the early hours of Thursday, Bitcoin broke the $29,000 level to cement a fresh high as the bullish strength and momentum appear not to be fading. This is significant because the price has been attempting to push back into a previous trading range to open the door to $32,000. Bitcoin is up ~73% for the year at the time of writing, with the cryptocurrency market certainly within its own lane as it brushes off the events of 2022.
Bitcoin’s high time frame outlook. Source: Tradingview
Why is Bitcoin So Strong?
After the FTX collapse, many market participants were calling for bitcoin to dip to $12,000 and lower. But, with the new year came a fresh start for the cryptocurrency industry. The lessons of 2022 must be learned for the sector to continue to prosper. Bulls have, without doubt, been in control for most, if not the whole year to date, with the upside moves being explosive and strong, with seemingly little room for bears to do anything to combat it. Bitcoin has thrived since the collapse of the Silicon Valley Bank (SVB) as it brought around the reminder despite the scarcity and halving events that surge the price, Bitcoin was created to provide us with an alternative to banks. Bitcoin rallied when Wall Street and the banking system were quivering and traded extremely closely to Gold, which also had big upside moves. Bitcoin increased by ~30% in the day’s post-SVB collapse. Bitcoin is now fractions away from reclaiming the trading range that could see it tag $30,000 and above in a single 1-minute candle, with the ball in the bulls’ corner. It is essential to note that Friday is the monthly and quarterly close, with Bitcoin marking a new monthly open level on Saturday, so the price may be volatile, leading into the next two days.
