2023 has started off incredibly well for the blockchain market , with BTC surging to almost €20.000 in less than 20 days—something even the most optimistic analysts would have completely ruled out at the end of December. But what can we say? That's BTC for you.
However, this dizzying rise has generated a lot of suspicion , and not everyone is entirely convinced that it's a sign that a new bull market is near, but rather a relief rally to keep the price at the levels where it was for most of the last half of 2022. What do you think?
BTC's bullish rally divides analysts regarding its immediate future
In just one week, BTC has risen by more than 25% , going from flirting with €14.000 to approaching €20.000. However, most analysts see it clearly: it's a bull trap.
A bull trap is an upward movement that triggers FOMO among investors, but which actually lacks sufficient strength to sustain itself and ends up retracing with the same momentum with which it rose.
"The total market capitalization and the altcoin market capitalization are both at the 200-day EMA, while Bitcoin is barely breaking through it with no volume," said renowned analyst Michaël Van de Poppe, founder and CEO of trading firm Eight.
De Poppe isn't the only one showing caution regarding the sudden rise in BTC, which reached almost €20.000 on January 17th, marking its highest point in the last five months. The well-known trader Crypto Tony also urged "patience" in the face of this situation.
"It reached the top of the range as anticipated yesterday. Today we will be waiting for: – A push above and a retest to confirm a safe long position while we are above – A push above and a close below the range high . Trigger for short positions," he said in his analysis of the leading cryptocurrency in the market.
However, not everyone agrees, and there are other, more optimistic opinions. One of them is that of the well-known investment firm Glassnode , which sees the recent market movements as a clear indication that we are about to begin an upward rally.
"With an explosive 23.3% surge to start the year, a large segment of Bitcoin investors (and miners) have seen their net holdings (and trades) return to profitability . This reflects the impact of both the strong price appreciation and the enormous volume of coins that have changed hands in recent months, readjusting their cost base downwards," Glassnode reports.
However, to know who is right, we will have to wait at least until the end of January , when we will get a clearer idea of what we can expect from BTC and the entire blockchain market during the first quarter and half of the year.
These will be the cryptocurrencies that benefit the most in a new BTC bull cycle
As is well known, when BTC stabilizes or grows, some altcoins benefit more than others, which is why we're going to give you a little hint about which cryptocurrencies we believe would benefit the most from a Bitcoin rise.
Let's see:
- Litecoin; When the price broke through the €85 resistance on January 12, an upward trend reversal was confirmed, and if supported by a rise in BTC, we could see significant gains in this blockchain.
- OKB; This cryptocurrency reached a new bullish target earlier this week, confirming an upward trend reversal that could take it to new all-time highs if BTC were to experience an upward surge.
- BitDAO; This project saw a price increase of over 50% on January 14th, which has remained slightly stable over the last 72 hours, confirming an early-stage bullish cycle that will yield significant profits with the support of BTC.
