Bitcoin (BTC) seems to be doing well, trying to leave behind the uncertainty that came from the newfound regulatory scrutiny of the crypto sector. Indeed, the uncertainty appeared to invalidate 2023 gains, with the asset facing mounting threats of a $20,000 retest.
However, the flagship crypto is aiming to stay firmly above $25,000, a position that will continue to be the center of attention leading up to the upcoming week of February 20-27. Based on historical data and the asset’s recent price movements, investors can expect some good luck for the asset in the coming days.
Specifically, historical data shared by Bitcoin analyst by Twitter pseudonym Equity moneyL indicates that Bitcoin has likely formed a foundation for the next move up. According to the analysis, Bitcoin has historically recovered after undergoing a capitulation phase.
The capitulation has taken place after recording a spike in the price. Between the two phases, Bitcoin has experienced ups and downs in its price trajectory. Along this line, the 2022 bear market formed the last Bitcoin capitulation level and 2023 gains point to a possible rally.
Based on Equity moneyL analysis, a popular Bitcoin commentator under the pseudonym Bitcoin archive on Twitter pointed out that the price movement of the first cryptocurrency in 2023 replicates the trajectory of 2019. Notably after forming a neckline in early 2019, the position formed the basis that culminated in Bitcoin’s rally into the 2021 bull market.
Bitcoin price analysis
As things stand, Bitcoin has failed to stay above $25,000 after briefly regaining its level on February 19. At the time of writing, Bitcoin was valued at $24,730 with daily gains of around 0.4%. However, on the weekly chart, Bitcoin is up more than 10%.
At the same time, Bitcoin continues to express bullish sentiment in terms of technical analysis, with one-day meters on Trade view recommend wealth building. A summary of the gauges stands for “buy” at 15, while moving averages for the “strong buy” sentiment stand at 13.
What now for Bitcoin?
With Bitcoin pointing to a bullish future, the asset’s current sentiment remains uncertain, particularly its inability to stay above $25,000.
As we look at Bitcoin’s potential in the coming days, it’s worth pointing out that the asset trading at $25,000 marked an eight-month high as investors flocked to high-risk digital assets despite regulatory pressure.
At the same time, economic indicators suggest the Federal Reserve could raise interest rates, and Bitcoin continued to gain momentum to hold above $24,000. In addition, Bitcoin appears to be benefiting as the US dollar experienced a slight dip, leading author Robert Kiyosaki to predict that BTC could be valued at $500,000 by 2025.
With Bitcoin now on Finbold’s list of cryptocurrencies to watch for the week of February 20, other technical indicators show that the asset has reached the bull market.
disclaimer: The content on this site should not be considered investment advice. Investing is speculative. Your capital is at risk when investing.
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