Here’s why February could be Bitcoin’s most important month in 2023
Bitcoin (BTC) has sustained significant gains in 2023, and the rally could position the asset to embark on a possible bull run.
In building up to a possible rally, a pseudonymous cryptanalyst Elcryptoprof in a chirping on February 8 stated that the month of February could be a key determinant of the asset’s price growth based on fundamental technical indicators that replicate historical moves.
In particular, the analyst stated that Bitcoin has already confirmed a move above its 10-day moving average. He observed that with Bitcoin previously undergoing a monthly close above the position, the development confirmed the start of a new rally in 2015 and 2019.
“This could be the most important month in 2023. A monthly close above the MA10 line has confirmed the start of the new bull run in 2015 and 2019. $BTC is now back above the MA10. Will this month decide whether BTC will start the new bull run? Is you ready?” the analyst asked.
In the case of Bitcoin in particular, a close above the MA10 line indicates that the cryptocurrency is experiencing upward momentum and may be in the early stages of a bullish trend. This is especially important for Bitcoin, considering that the asset suffered a significant price drop in 2022.
Bitcoin bullish indicators
Based on the prediction, Bitcoin has indicated possible signs of undergoing a price breakout based on other technical indicators. For example, Bitcoin recently confirmed the golden cross trading pattern that last appeared before the 2020 and 2021 bull runs.
After rising around 40% to start the year, Bitcoin appears to have hit a bumpy road in the past week, highlighting the overall skepticism among investors regarding the surprise rally. All told, the Bitcoin rally has helped the market add about $300 billion in capitalization by 2023 to regain its $1 trillion valuation.
Overall, Bitcoin is looking for a possible catalyst from macroeconomic factors that weighed on the overall market in 2022. Risk assets like BTC are likely to benefit in the wake of a slowdown in inflation, signaling a possible cut in rate hikes.
Despite possible bullish triggers, however, Bitcoin faces uncertainty, with the maiden crypto unable to hold above $23,000, a level that proved significant resistance in recent days.
Bitcoin price analysis
At press time, Bitcoin was trading at $22,877, highlighting a new phase of consolidation considering that BTC has only corrected by less than 0.5% on both daily and weekly charts.
A review of the asset’s one-day meters on TradingView is largely bullish, with summaries and moving averages favoring “buy” sentiment at 11 and 10, respectively. Oscillators recommend neutrality gauge at 8.
Finally, with Bitcoin correcting in the near term, the asset is still dominated by bullish sentiments that are likely to spur a price rally.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
