Bitcoin (BTC) appears to be faring well, attempting to put behind the uncertainty that emanated from the renewed regulatory scrutiny on the crypto sector. Indeed, the uncertainty appeared to invalidate the 2023 gains, with the asset facing increased threats of retesting $20,000.
However, the flagship crypto is targeting to hold firmly above $25,000, a position that remains the center of attention ahead of the upcoming week of February 20-27th. Based on historical data and the asset’s recent price movement, investors can expect possible good fortunes for the asset in the coming days.
In particular, historical data shared by Bitcoin analyst by Twitter pseudonym StockmoneyL indicates that Bitcoin has likely formed a foundation for the next leg up. As per the analysis, Bitcoin has historically rallied after undergoing a capitulation stage.
The capitulation has occurred after recording a peak in its price. Between the two stages, Bitcoin has experienced ups and downs in its price trajectory. In this line, the 2022 bear market formed the last Bitcoin capitulation level, and the 2023 gains point at a possible rally.
Based on StockmoneyL analysis, a popular Bitcoin commentator by the pseudonym Bitcoin Archive on Twitter pointed out that the maiden cryptocurrency’s 2023 price movement replicates the 2019 trajectory. Notably, after forming a neckline in early 2019, the position formed the foundation culminating in Bitcoin rallying toward the 2021 bull market.
Bitcoin price analysis
As things stand, Bitcoin has failed to hold above $25,000 after briefly reclaiming the level on February 19. By press time, Bitcoin was valued at $24,730 with daily gains of about 0.4%. However, on the weekly chart, Bitcoin is up over 10%.
At the same time, Bitcoin continues to express bullish sentiment on the technical analysis front, with one-day gauges on TradingView recommending asset accumulation. A summary of the gauges stands for ‘buy’ at 15, while moving averages are for the ‘strong buy’ sentiment at 13.
What next for Bitcoin?
With Bitcoin hinting at a bullish future, the asset’s current sentiment remains uncertain, especially the inability to hold above $25,000.
While looking at Bitcoin’s potential in the coming days, it is worth pointing out that the asset trading at $25,000 marked an eight-month high as investors flocked to risky digital assets, despite regulatory pressure.
At the same time, economic indicators suggest that the Federal Reserve may increase interest rates, and Bitcoin has continued to gain momentum to hold above $24,000. In addition, Bitcoin seems to be benefiting as the US dollar experienced a slight dip, which has resulted in author Robert Kiyosaki projecting that BTC might be valued at $500,000 by 2025.
With Bitcoin making it to the list of Finbold’s cryptocurrencies to watch for the week of February 20, other technical indicators show the asset has hit the bull market cross.
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