Bitcoin Hits $23,000 As Crypto Market Cap Revisits $1 Trillion Mark

Bitcoin, the king of cryptocurrencies, has been crossing multiple crucial resistances since the start of the year. According to CoinGecko, the coin is now up 14% in the weekly timeframe, and trading at $23,008, making BTC break through the $22,000 and $23,000 resistance levels that have limited the crypto’s ascent. 

This year witnessed a complete U-turn in investor sentiment on cryptocurrencies as both Ethereum and Bitcoin reaped massive gains, along with the other top altcoins. This led to the entire crypto market to experience a resurgence in almost all aspects.

At the time of writing, the current market cap of the entire cryptocurrency market is at $1.05 trillion, according to CoinMarketCap. 

Twitter has been very bullish since the coin broke through its latest line of barrier. Analysts say that the break on the $23k wall will validate the entry of this year’s bull market, with some even targeting $100,000, or more, in the long term. 

This recent price movement led to massive liquidations of short positions on Bitcoin. There are several reasons as to why this BTC broke through $23k. 

#Bitcoin / $BTC

When this finally breaks through, we’ll see a glorious god candle to $30K

Just don’t think today is the day that’s going to happen

be careful and don’t get too greedy yet friends pic.twitter.com/22UMHUNBCv

— K A L E O (@CryptoKaleo) January 20, 2023

Just this few hours ago, the NASDAQ index jumped almost 3% as tech stocks led the market rally. Bitcoin is heavily connected to the traditional financial space. This means if major indices like the NASDAQ continue to go up, Bitcoin will follow suit along with the entire cryptocurrencies. 

With the broader financial space eyeing an economic soft-landing, bullishness on both the crypto and stock market will continue as the situation improves. December’s Consumer Price Data (CPI) contributed to the optimistic mood.

Bitcoin’s price movement is expected to slow down a bit in the short term, some analysts said, as the next target will be $30k in the coming weeks or months.

At the time of writing, the Bitcoin bulls should try and consolidate above its current support at $22,661 which will be retested by the bears in the next few days as $23,328 resisted today’s bullishness.

Investors and traders should also keep an eye on consolidation for now as market momentum might slow down. Bitcoin’s halving – an event that would cut the total supply of the coin in the market – would also place upward pressure as it happens. 

Bulls should also keep tabs of the current situation in the traditional financial space. With the coin’s high correlation with the stock market, Bitcoin’s future will be reliant on the movement of the stock market along with improving macroeconomic trends. 

For now, Bitcoin holders should have enough strength to consolidate and target $24.5k and $25k resistances. 

Featured image by Helvetia