After months of a gloomy bear market, the cryptocurrency market has decided to start the year 2023 with a bang. Bitcoin (BTC) continues the days in the green with a new rise of +12% yesterday, dragging all altcoins behind it. When will this increase stop?
The crypto market is exploding
As often, the cryptocurrency market knows how to be unpredictable. After a week of exceptional growth, Bitcoin (BTC) price offered us a bullish rally again. The king of cryptocurrencies closed yesterday positive by 5.8% and led this Saturday, January 14 by a huge +6% bullish candle in one hour.
The market starts a seventh day of affiliation in the green, a great first for several months. But above all, Bitcoin hit $21,500 overnighta symbolic level never revisited since the beginning of November and the FTX affair.
Evolution of Bitcoin price in daily timescale
Altcoins obviously followed suit. Solana’s SOL ended the day up more than 31% and posted an increase of 72% this week. As for the Avalanche (AVAX), the timing of the announcement of its partnership with Amazon was excellent since it allowed him to appreciate by +51% in 7 days.
Other active ingredients also exhibit similar or even more exceptional feats: Decentraland (MANA) at +85%, Aptos (APT) at +106%, Curve (CRV) at +50%, Gala (GALA) at +120%… In short, performance worthy of a bull market.
👉 Don’t miss any moves and follow all cryptocurrency prices live
The #1 exchange in the world – Regulated in France
10% off your fees with code SVULQ98B 🔥
Watch out for a potential fix
Although this succession of green candles is appreciable, you still have to be careful. The general trend in the cryptocurrency market remains bearish and there is no indication that we have exited the bear market. Even so, such a rise is usually accompanied by a downside correction.
However, the cryptocurrency market knows how to be surprising and difficult to tame. This week, each bullish movement was punctuated by a small sideways movement of a few hours, prompting traders to short (betting down) before the market goes up again.
As this data from Coinglass shows, the cryptocurrency market saw $721 million in liquidations in 24 hours, a registration since November 8, 2022 and the announcement of the bankruptcy of FTX:
Liquidations in the cryptocurrency market
We obviously don’t have a crystal ball, but it is very likely to see Bitcoin correct this strong bullish movement. In addition, technical analysis shows us that the price is moving under many resistances. In summary, caution is in order.
Vincent Ganne analyzes the crypto markets every day on our private group
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus using our privileges.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or additional loss following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk price must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.