Celebration Alert Bitcoin price resumes rally above $20,000 after two months

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Bitcoin rises to $21,000 after two months of consolidation. Market capitalization was recorded at $402.3 billion, up 11% overnight. $15 billion remains to reach the total market capitalization of $1 trillion.

The 2022 fiscal year was very volatile for the crypto market. Thus, the largest cryptocurrency bitcoin fell from $48,189 to a two-year low of $15,476. This 64.21% price drop put the total crypto market capitalization below $800 billion due to the major collapse of the crypto exchange-FTX.

Buyers typically gradually accumulate digital assets, but this rapid recovery has once again forced investors to take a bullish view of cryptocurrency. So, if the crypto market cap remains at $1 trillion before the end of January, crypto winter may soon be upon us again.

Take a closer look at Bitcoin price

The global crypto market capitalization saw a 9% gain overnight to $985 billion. In fact, bitcoin’s market capitalization surpassed $400 billion today, a significant reason behind the positive conditions. Investors are looking forward to $1 trillion in fiscal year 2023 to celebrate the rally.

Notably, the biggest cryptocurrency bitcoin hit a two-month high above $21,000 during the intraday trading session. Buyers have seen a slight pullback so far, with speculators placing the bid at $20,916 at the time of writing. Later, $20,000 turned into immediate support and the $21,300-$21,500 area became a hurdle.

The bullish rally in bitcoin price against USDT began on January 1, with the latter bringing buyers around 26% over the past 14 days. It looks like the market is headed lower if the buyers hold the key 24-hour level of $20,000.

Due to the continuation of the upward trend, the participation of buyers is increasing, thus recording a transaction volume of $40.7 billion, up 31% in the last 24 hours. This volatile market pushed the price of bitcoin above the 200 EMA line of the EMA Ribbon indicator. On the daily price chart, buyers attempted to overcome the downtrend line below the 200 EMA, which has held for 283 days.

The overbought RSI reached the 90 level, suggesting a bullish trend in BTC. Likewise, the MACD extends higher into the positive zone.

Final Thoughts

Bitcoin (BTC) price hit $20,000 in the second week of January. A positive start to the year may soon erase buyers’ losses from the FTX crash.

Support Level – $20,000 and $18,000

Resistance level – $22,500 and $25,000

Disclaimer

The views and opinions expressed by the author, or anyone named in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto assets involves the risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies during his post-grad studies. He is a fine observer of details and shares his passion for writing while being a developer. His backend blockchain knowledge helps him bring a unique perspective to his writing

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