Can Bitcoin bulls continue on their way?

Can Bitcoin bulls continue on their way?
Analysis
Ahura Chalki
Author:
Ahura Chalki
Published on: 12.01.2023 13:29 (UTC)
Post reading time: 1.6 min
543

Investors have become more cautious, and overall digital currencies market is still suffering.


On Wednesday, January 11, FTX said it had recovered $5 billion in cash and cryptocurrencies, which it may sell to repay its creditors. This report helped the crypto market sentiment and can still cause a short-term bull if FTX customers get refunded.


Before this report, the crypto market had a slight positive tendency since the beginning of 2023, while significant cryptocurrencies dropped near a 2-year low towards the end of 2022. However, while many crypto market participants believe that the cryptocurrency winter is nearly over and these levels could be an investment opportunity, we still need more signs to count on. After an almost 65% loss last year and expecting a recession in 2023, this year could be another challenging period for cryptocurrencies.


Bitcoin price was near $16,500 at the start of the last week, ended the week around $17,000, and was trading in a slight uptrend in the H1 and H4 charts. Still, after a report about FTX and its success in recovering $5 billion from its assets, the price jumped above $18,300 overnight. Despite some corrections, still, the trend has maintained its upward movement. So while the 18,400 resistance is the door for higher levels, in reverse, essential support levels sit at $16,900 and then $15,600. 


We can see almost the same movements in Ethereum, Ripple, Cardano, and other leading coins. Ethereum price rose from $1,190 to nearly $1,280 at the beginning of this week. A slight uptrend this week continued, and after the FTX report, ETH also jumped above $1,400 in overnight trading. Ethereum supports sit at $1,250 and then $1050; its resistance could be around $1,650.


Considering overall risky market conditions and fears of a possible recession, and while global cryptocurrency market capitalization is dropping from $2.3 trillion at the start of 2022 to $830 billion at the being of 2023, we can say that investors became more cautious and overall digital currencies' market can still suffer from being able to gain back the trusts.