Bitcoin Rally Gains Momentum as Apex Crypto Explodes Above $23,000: What’s Driving the Surge?

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The Bitcoin BTC/USD rally that started at the start of the new year has gained strength, thanks to the general increase in risk appetite.

What happened: Bitcoin crossed the psychological threshold of $23,000 intraday on Saturday for the first time since mid-August 2022. When last checked, the crypto apex was up 9.20% at 23,032 $.77, according to Benzinga Pro data.

After dropping to a low of $15,599.05 on November 21, 2022, the crypto began to stagnate and ended 2022 at $16,547.50, down 64.3% for the year. By the way, about a year ago, in November 2021, Bitcoin hit an all-time high of $68,789.63.

Bitcoin’s lackluster phase continued in 2023 until January 11. Subsequently, the crypto started to gain some upward momentum and broke through $20,000 on January 14th. Since then, it has maintained its support at this level. The $22,000 level was breached on Friday and the crypto broke above the mark and hit $23,000 the following day.

Graphic courtesy of Benzinga Pro

See also: How to buy cryptocurrencies

Why it matters: The new year has brought new hope to the market. The main positive catalyst is the expectation that the Fed will slow the pace of rate hikes at the February meeting, with some even expecting a pause at subsequent meetings. The main motivation for the Fed to ease off is data showing slowing growth due to the cumulative impact of rate hikes.

Morgan Stanley attributed the recent rally to the liquidation of short Bitcoin futures, Investing.com reported.

BTC’s rally was quick and driven more by technicalities than a fundamental shift in market participants’ outlook. Trading volumes are low and institutional activity is unlikely to pick up unless BTC trades materially higher, the company reportedly said.

Key levels to watch: If the momentum continues, Bitcoin faces the next test around the $24,400 level. Other resistance areas on the upside are around $26,760 and $31,800. On the other hand, the $19,110 level would act as a support level for the crypto.

Read next:For Michael Saylor, Bitcoin is a fight for “personal sovereignty, long-term value”

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