Bitcoin price will hit $24,000 mark Can BTC break $25,000 in February?

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Bitcoin, the reputed king of crypto, is expected to lead the crypto market boom in 2023. As of this writing, BTC is trading at $23,707, allowing the alpha coin to regain its support level of August 2022 of $22,722. This caused an explosion of enthusiasm in crypto Twitter as analysts grew bullish on BTC, with some setting huge targets for the end of the year.

However, some observers view the current outbreak with extreme caution. Due to the fear, uncertainty, and doubt currently surrounding Bitcoin, this surge could be interpreted as a bullish trap, creating many long-position holders for long-term losses. With the current positive momentum, however, BTC may still have room to advance towards $25,000.

Can the Bulls take the price of Bitcoin to the $25,000 level?

As Bitcoin surged above $23,000, data from CoinGlass indicates that a total of $29.64 million in short positions were liquidated across all exchanges. This may seem minor compared to the $141 million in short position liquidations on Jan. 14, but these liquidations may push some bears to go long if Bitcoin rises further.

According to CoinMarketCap, at the time of writing, the king of cryptocurrencies has already risen by 42%. This could continue as macroeconomic conditions gradually improve. In the short to medium term, the leading cryptocurrency could suffer losses as the positive momentum fades. As of January 30, BTC bulls look tired.

If this decelerating momentum persists, the coin could pull back to its current support level of $22,622. This support should be able to withstand strong bearish momentum if it ever occurs. In addition, investors and traders must monitor the movement of stocks. The International Monetary Fund’s 2022 analysis of the relationship between cryptocurrencies and stocks demonstrates a substantial association between the two asset classes.

At the time of writing, Bitcoin has a significant association with key tech stocks like Apple and AMD. However, indices such as the S&P 500 and the Dow Jones have a lower correlation. However, the correlation between Bitcoin and stocks makes Bitcoin susceptible to macroeconomic issues. Due to investor skepticism despite the market rally that began this year, Bitcoin could experience volatility in February.

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