Bitcoin Price Breaks Out of 59-day Consolidation Range. $24,500 Next?

Bitcoin's value has been extremely stagnant for several months now. Crypto Winters are notorious for low trading volume and low volatility and those are exactly the conditions we have been facing for many weeks now. BTC has been trading around $19-20,000 per token but has managed to put together the momentum to break its all-important level of $20,400. 

Looking at the weekly time frame, the BTC USD chart appears to have bottomed out, forming what analysts call a 'double bottom'. This usually signifies a reversal from the current trend. As we have been seeing bearish price action, this, in theory, means that we should be transitioning into a bullish phase of the market – the most obvious area of resistance to look at next would be the Bitcoin local high of around $24,500 – roughly a 22% increase from current levels.

What gives this notion greater confluence is that the Relative Strength Index – an indication of market momentum – has formed a bullish divergence on the weekly time frame too. That is to say that the lower low of bitcoin was met with greater market momentum.

The last time BTC saw a similar trading pattern was at the end of the bear market in November 2018, directly before a 400% appreciation in the price of Bitcoin. Now before we start to count our chickens and declare ourselves millionaires because the bull market is back, there is a degree of consideration due.

The Different Macro-Economic climate

Coming towards the end of 2022, global finance is not nearly as stable as it was at the end of 2018. Global economies are now feeling the effects of numerous lockdowns and fears of a recession are rife. Numerous tech companies such as Meta, Amazon and notably Alphabet (Google Parents) all delivered disappointing earnings by missing revenue targets.

Coupled with rising inflation rates, many are worried about a wider and more sinister market crash, one that would seriously cripple the Bitcoin and wider crypto markets.

So can we not draw a like-for-like comparison between then and now? Well, the term lightning never strikes the same place twice seems to have relevance here. History doesn't repeat itself but it can rhyme, and while the Bitcoin chart may look bullish, the macro narrative doesn't quite align at the moment.

Cathie Wood remains bullish on Bitcoin

ARK Invest's CEO, notorious for her belief in disruptive technology, has not lost any of her conviction in the future success of BTC. Remaining confident that the current global financial infrastructure is set to be reshaped by Satoshi's Bitcoin and Vitalik's Ethereum, Cathie Wood places an almighty price tag on Bitcoin by the year 2030. Her speculative price tags have led her to receive criticism from more traditional analysts and when you hear the price tag she hints at, you may understand why.

By becoming entwined with new markets, Cathie Wood believes Bitcoin could be trading between $500,000-$1,000,000 by the year 2030. Bitcoin's fixed cap of 21 million tokens is what gives rise to this seemingly absurd price prediction, but the ARK Invest CEO has been proven right many times in the past. Could she be right again about Bitcoin?

Taking fixed supply currencies into the meme market

Big Eyes Coin has been spicing up the meme coin market in recent weeks. Raising $9 million in its presale, the project is soon to launch on a CEX near you. Looking to take advantage of the saturated doge market, the Big Eyes cat aims to bring value into the DeFi ecosystem and wealth to its holders.

With a fixed supply of 200 billion tokens, 70% of which are available to the public now through its presale, Big Eyes is bridging the characteristics of Bitcoin with the meme coin market.

Looking for a hedge against inflation with an astronomical potential ROI? Check the button below to be taken to the Big Eyes presale!