A noticeable rally in the BTC could be spotted right at the start of the month. This rally has indicated a positive start to the month and investors are expecting the crypto winters to come to an end. But does it mean that Bitcoin would be able to cross the mark of $30,000? Or would we see a correction after the short hike, bringing back the BTC to $20,000 levels?
In this article, we are going to dive deep into understanding the reasons that can make it possible for Bitcoin to reach the mark of $30,000 while also discussing the possibility of it falling below $20,000.
After having some severe turbulence in the last few months of 2022, the cryptocurrency market continued to remain bearish for a long time. However, the new year of 2023 brought some optimistic sentiment in the market with BTC breaking the physiological mark of $24,000 in the last five months. On 1st Jan, when Bitcoin opened near the price of $16,500, it continued to move up and recorded a 43% hike by the end of the month.
This rally invited more investors into the space and allowed Bitcoin to maintain the safe mark of $20,500. According to the technical research experts at CoinGabbar, the price rise at the start of the month was due to the investors’ positive take on the changing global order, reducing inflation rates, and collective efforts from the governments
The optimism from the Jan rally continued at the start of this month and investors went on to accumulate more BTC. Microstrategy, an enterprise analytics platform, declared that they have bought 8,800 BTC during the 2022 market dip with the current exposure close to $1.3 billion in Bitcoin. This news got well received by the Bitcoin community adding fuel to the already rising charts.
Apart from that, the Fed said the U.S. economy was enjoying "modest growth" and "robust" job gains, with policymakers still "highly attentive to inflation risks" as it seeks to tighten financial conditions and reign in high prices. Markets have been pricing in the possibility of a rate cut by the Fed in the back half of the year.
The tone of the Fed chairmen in the post-meeting conference was positive and gave confidence to the investors to rush towards markets.
Adding to the positive reasons behind the Bitcoin rally was China levying a 20% tax on crypto gains despite having a complicated relationship with crypto. China had banned operations related to cryptocurrency in the country but finally, it is moving towards crypto regulation as it is home to a massive crypto investor community.
After consecutive strong rallies from Bitcoin, market experts are keeping a close eye on the next target of $30,000. At the time of writing, Bitcoin is trading in the range of $23,000-$24,000. However, achieving this target price may not be easy for BTC as there is very strong resistance near the price point of $25,200.
Bitcoin has been unable to break this resistance for the past 5 months and only a significant push from investors can help it cross this threshold. If something major happens in the crypto industry in February, there is a high likelihood that BTC will be able to break this resistance and reach the $30,000 mark in a short time.
When there is a possibility of Bitcoin rising high, it is also possible that any bearish market sentiment pulls it back to the level of $20,000. Even though there is an optimistic sentiment in the market, here are some of the reasons that can restrict the rise further.
A Double Top Pattern has been noted in the daily charts of Bitcoin and it creates a possibility of minor corrections in the coming days. If investors exit the market after making marginal profits, it is possible that BTC would not be able to maintain its current levels.
The unemployment rate in the U.S.A. is at a 54-year high, this is not the most suitable metric for the BTC to break its 5-month-long resistance levels.
India is one of the biggest crypto markets in the world and the recent budget of the country had no space for cryptocurrency. The lack of positive news from the budget has disappointed the Indian stakeholders significantly.
As per the on-chain data, the Bitcoin miners are squaring off their positions in BTC with less hope of a short-term recovery. If this continues in February, breaking the mark of $25,200 would be a challenge for Bitcoin.
The cryptocurrency markets are attempting to recover from a prolonged winter season, gradually gaining momentum. The industry has just endured the most challenging phase of its history, and it will take time to fully recuperate from the losses. The new heights being achieved daily are a sign that crypto summer is just around the corner.
The Indian government is also working diligently towards achieving a global consensus on cryptocurrencies during its tenure of the G-20 presidency. At the pace crypto is expanding today, there is a very high chance of mass adoption of cryptocurrencies in the times to come. However, this February would be an interesting month for crypto enthusiasts as Bitcoin can potentially break the long-held resistance with the right support from the community.
