Can Bitcoin Continue Rallying Throughout 2023? Here's the answer
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The outlook for the Bitcoin (BTC) asset has been showing a rapid positive update recently. with its token price heading to higher values.
However, BTC, which had crept up after the announcement of the FOMC results to more than US$ 24,000, is now back down to US$ 23,735. The question from enthusiasts is whether BTC will be able to continue its rally throughout 2023?
The break in the price rally that occurred in the early hours of February 2nd was quickly wiped out by the selling activity in the second half of the day. Despite reaching barely over $24,000, BTC is facing a sharp decline in its MACD indicator, while its RSI indicator continues to be in an overbought range.
On the other hand, BTC transaction volume is in the higher range without facing any complications or difficulties. Even so, MACD producing a bearish cross pattern could allow sellers to narrow their recent gains.
At the moment, support is still seen near the US$22,300 level, while the 200 EMA placed near US$21,000 has gradually started to move in a parabolic pattern, which confirms the change in sentiment even on the longer term chart.
If you look at the weekly chart, BTC must break the level of US $ 24,800. This break will be a key factor pushing the major crypto asset towards its previous critical resistance and psychological level like US$29,600.
As is known, BTC dominates the crypto market because of its recognition as the first and biggest currency. With a large user base and a high level of security, Bitcoin has established itself as a reliable investment option in the digital currency world.
This of course has a strong network effect. The more users, the more valuable the digital asset. Bitcoin's decentralization and transparency increased its popularity, by giving users control over their transactions without any interference from third-party intermediaries.
The value of Bitcoin has a direct impact on other currencies on the market. The dominance of this asset, makes it a benchmark for the second major crypto namely ETH and other altcoins.
Additionally, price movements can often trigger similar moves in other coins. When the value of Bitcoin increases, it is often accompanied by an increase in the value of other cryptocurrencies, which is known as an 'Altcoin Rally'.
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