The price of Bitcoin (BTC) has increased by almost 40% in the month of January and is currently in a position to make a significant new high if historical results are any indication of future performance. Bitcoin’s most recent upswing is similar to the bullish revival that occurred in the middle of 2019.
Around the time, the U.S. Federal Reserve eased off on the tightening pedal four years ago, giving way to Bitcoin’s upswing bull revival that saw the price climb by almost 250%.
The rebound comes as the Fed nears the conclusion of its liquidity-tightening cycle, which roiled risky assets, including cryptocurrencies, and after a year-long slump that slashed 68% off the price of BTC before it entered a protracted consolidation phase at the bear market’s depths at around $18,000.
Bitcoin price analysis
Bitcoin is currently changing hands at $22,970, up 9.54% over the last week, with a total market capitalization of $442 billion.
On January 26, a cryptocurrency trader and analyst going by the Twitter handle Thescalpingpro indicated that the possibility of Bitcoin reaching $28,000 is viable, despite the fact that the digital asset faces heavy resistance ahead.
The analyst said Bitcoin bears are still in shock after the recent bounce and will continue to short the cryptocurrency. However, he emphasized that the range between $23,500 and $24,500 should continue to be closely monitored, as he thinks that breaking through this zone would cause Bitcoin to surge to $28,100.
According to a report by Finbold, the asset is in a position where it is about to complete the bullish golden cross pattern. Within the context of this pattern, Bitcoin’s 50-day moving average (MA) is very close to passing over its 200-day MA.
However, it should be noted that analysts have also pointed out that Bitcoin is gazing at a first-ever death cross on the one-week chart, which potentially indicates some bearish action.
Goldman Sachs ranks Bitcoin as the best-performing asset of 2023
Bank behemoth Goldman Sachs (NYSE: GS) has named Bitcoin the best-performing asset in the world in 2023, despite the fact that the cryptocurrency sector has faced enormous losses in 2022, including many bankruptcies and fraud investigations.
Goldman Sachs, an outspoken opponent of Bitcoin in the past, has admitted in a report covering the first half of 2018, that Bitcoin has outperformed other asset classes such as the S&P 500, gold, real estate, and the Nasdaq 100.
BTC has outperformed MSCI emerging markets index, MSCI developed markets, energy, information technology (IT), financials, 10-year U.S. Treasury, health care, utilities, materials, crude oil, consumer staples, and many more, making it certainly worth a look at in February and beyond.
