The cryptocurrency market is one with ever-growing adoption. Bitcoin is the biggest cryptocurrency by market capitalization, influencing the prices of altcoins. BTC started a downtrend in the 4th quarter of 2021, creating lower lows. This downtrend ended in January 2023, as BTC started an uptrend.
This uptrend has marked the beginning of a new bullish run, as the price has broken the $31,000 resistance, which held strong for over 190 days. What does this mean for the crypto market?
What’s Behind Bitcoin’s Latest Surge?
Although Bitcoin seems to have entered its bullish stage, the price surged from $26,000 to $34,000 in a week, causing more people to want to trade crypto and analysts to wonder what caused the price increase. The surge coincided with reports stating that US regulators were about to approve the first spot Bitcoin Exchange Traded Fund (ETF).
With a physical Bitcoin ETF, private and institutional investors can track the Bitcoin price without buying it. This would make it easy for them to add it to their portfolio. So, even if you don’t trust or understand how Bitcoin works, you can still be aware of the price and invest.
The growing number of applications from Wall Street giants to release Bitcoin-backed ETFs, and many calls for regulatory clarity sparked Bitcoin’s latest bull run. It’s also important to note that the historical Bitcoin price trend showed that the cryptocurrency broke its monthly descending trend at the beginning of 2023, proving that Bitcoin was approaching its bull run.
Repeating a Previous Pattern
Cryptocurrency investors are familiar with Bitcoin’s price surges, as its value can skyrocket in just a week and drop significantly before anyone can notice. In 2017, the price of Bitcoin was around $1,000 until it reached $2,000 in May and suddenly skyrocketed to $19,345 in December.
In 2018 and 2019, Bitcoin prices moved sideways multiple times. For instance, in June 2019, the price went over $10,000. However, by mid-December, it fell to $6,635. In 2020, Bitcoin started at $6,965 but reached about $29,000 by January 2021 — a 416% increase.
By January 2021, the price surpassed $40,000, but investors were surprised further when the prices reached over $60,000 that April. During summer, the prices halved, placing Bitcoin at $29,796 in July. September saw another Bitcoin bull run as the price rose to $52,693.
Bitcoin’s all-time high occurred in November 2021, when the price reached $68,789 and closed at $64,995. By 2022, the cost of Bitcoin gradually declined, and 2023 was the first time since 2021 that the price went under $30,000 — exaggerating the claim that Bitcoin is digital gold.
In 2023, Bitcoin followed its usual bullish run, and it suddenly rose to $35,000, an 18-month high.
What Does the Future Hold?
Bitcoin has made quite the comeback with its latest bull run, with analysts predicting that the price would go as high as $37,000. It has reached an 18-month high of $35,000, especially with reports that US regulators will approve the first spot Bitcoin ETF. Bitcoin’s price surge is not unprecedented, but it looks like something new is happening with the world’s number one cryptocurrency, as it is attracting new demand.
Investors are looking to buy before the price further takes off. At the start of 2023, Bitcoin was trading at $16,605, and throughout the year, it has gone back and forth to the $25,000 mark. Suddenly, the value skyrocketed, causing analysts to wonder what the next bull run has in store. Investors wonder if they should trade crypto in anticipation of another price high.
With this new bull run, it is expected that many will be afraid of missing out, especially if this is the most significant run in Bitcoin’s history.
When it comes to Bitcoin, no one knows what will happen next, as there’s a lot of uncertainty when analyzing the short-term price trajectory. Many are anticipating a price surge to $37,000, while others are predicting a decline to $33,000 or $32,600. As of now, Bitcoin has a value of $35,232.10. If the current bullish sentiment continues, Bitcoin’s price might face resistance at $36,200 and $37,000.
On the other hand, bearish sentiments might take hold, bringing the price down to as low as $33,100. It is a good idea to observe price activity before making an investment choice. At the same time, playing it too cautiously could mean missing out on one of the most tremendous bull runs in Bitcoin’s history.
At this point, investors are closely watching this highly speculative asset, and it seems a good idea to wait for the US regulators to approve the Bitcoin ETF before investing. You can gamble a small part of your portfolio, especially since some say the price might surge to $40,000.
Written by
Paul Kinyua
Paul Kinyua is a passionate researcher, writer, and editor with a deep interest in cryptocurrencies and blockchain technology. He’s a tech enthusiast and educator who enjoys unraveling the complexities of blockchain technology for readers.
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