BTC above 24K, can we trust bulls?

BTC above 24K, can we trust bulls?
Analysis
Ahura Chalki
Author:
Ahura Chalki
Published on: 16.02.2023 19:41 (UTC)
Post reading time: 1.32 min
600


After two weeks of falling, Bitcoin and most altcoins regained most of their losses. However, the main question is how far this price rise can continue, and can we trust bulls or not? After touching an almost one-month low of around 21,000 USD on February 13, with an almost 17% gain, BTC raised to $24,867 early Thursday. It is the highest level since mid-August 2022. 


After the United States inflation number was announced on February 14, market participants had different reactions, and still, it needs to be clarified what it should be. Lower annual inflation, higher monthly prices, better-than-expected job markets, and economic data made a mixed condition. It made it much harder for investors to decide where to put the money. Better data means that we can face the soft landing and recession is not a severe case, while it also means that Fed will have more rooms to raise rates and control inflation, with no fear of recession. Still, there is no specific reason to justify this rise in the so-called risk assets. 


In summary, since the overall economic condition needs to be clarified and is accompanied by many doubts, trusting these bulls would be a difficult and even risky choice. 


From a technical point of view, the BTC chart signifies a bullish momentum. The price could reach above $25K, and above that, it could reach the next resistance at the $25,972 level for a second time. On the flip side, if the price starts to fall again, it could reach $24K, and breaching under that will open the doors for 22K and below that.