Here’s why February could be Bitcoin’s most important month in 2023
Bitcoin (BTC) has maintained significant gains in 2023, and the rally might be positioning the asset to embark on a possible bull run.
In building up to a possible rally, a crypto analyst by the pseudonym Elcryptoprof in a tweet on February 8, stated that the month of February could be a key determinant in the asset’s price growth based on fundamental technical indicators that are replicating historical moves.
Particularly, the analyst stated that Bitcoin has already confirmed a move above the 10-day moving average. He observed that with Bitcoin previously undergoing a monthly close above the position, the development confirmed the start of a new rally in 2015 and 2019.
“This could be the most important month in 2023. A monthly close above the MA10-Line has confirmed the start of the new bull run in 2015 and 2019. $BTC is currently back above MA10. Will this month decide whether BTC will start the new bull run? Are you ready?” the analyst posed.
Notably, in the case of Bitcoin, a close above the MA10 line indicates that the cryptocurrency is experiencing upward momentum and could be in the early stages of a bullish trend. This is particularly important for Bitcoin, considering the asset suffered a significant price drop in 2022.
Bitcoin bullish indicators
Going by the prediction, Bitcoin has indicated possible signs of undergoing a price breakout based on other technical indicators. For instance, Bitcoin recently confirmed the golden cross trading pattern that last emerged before the bull runs of 2020 and 2021.
After rising about 40% to start the year, Bitcoin appears to have hit a bumpy path in the past week, highlighting the overarching skepticism among investors regarding the surprise rally. All in all, the Bitcoin rally has helped the market add about $300 billion in capitalization in 2023 to reclaim the $1 trillion valuation.
Overall, Bitcoin is looking for a possible catalyst from macroeconomic factors that weighed down the general market in 2022. Risk assets such as BTC are likely to benefit in the wake of a slowdown in inflation, signaling a possible cut in interest rate hikes.
However, despite possible bullish triggers, Bitcoin is facing uncertainty, with the maiden crypto failing to hold above $23,000, a level that emerged as significant resistance in recent days.
Bitcoin price analysis
By press time, Bitcoin was trading at $22,877, highlighting a new consolidation phase considering that BTC has only corrected by less than 0.5% on both daily and weekly charts.
A review of the asset’s one-day gauges on TradingView is largely bullish, with summary and moving averages going for ‘buy’ sentiment at 11 and 10, respectively. Oscillators are recommending neutrality gauging at 8.
Finally, with Bitcoin correcting in the short term, the asset is still dominated by bullish sentiments likely to spur a price rally.
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