Bitcoin Surges to $40,000 - Start Investing Now!
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Bitcoin Surges to $40,000 - Start Investing Now!

written by John Murphy | February 23, 2023

BTC’s current price is heading lower for the day, but Michal van de Poppe believes that it will continue to be strong in the long term. As the US stock markets began down on February 21, the selling impact on Bitcoin BTC tickers down $24,124 was noticed.

Bitcoin Surges to $40,000

Statistical data from TradingView and Cointelegraph Markets Pro indicated that the BTC/USD exchange rate has dropped to a daily low of $24,324 on Bitstamp. After a rapid rejection in most previous attempts to move $25,000 to support, the pair had already bearish signals in place.

Monitoring tool Material Indicators came to the conclusion that Bitcoin must reach support at a 200-week moving average (MA) of around $25,100 in order to maintain buck the long-term trend despite concerns about whale activity on exchanges.

With the demand wall over $24k, it indicated in the part of comments in its most recent Twitter post that, in its opinion, shorting from this level carries roughly the same amount of short-term risk as long, as we see complete candles above the 200 WMA. Prior to the opening of Wall Street, availability was growing closer to the spot price, as shown on the accompanying chart of the Binance order book.

However, Caleb Franzen, a professional market analyst at Cubic Analytics, had a pessimistic view of the S&P 500 in particular, suggesting that risk asset performance will continue to have an impact on cryptocurrency. The 200-day moving average cloud, an early support level, is expected to restart. The S&P 500 dropped 1.3% and the Nasdaq Composite Index was lower by 1.7% at the time of this writing.

Despite being in general negative correlation with shares and cryptocurrencies, the U.S. Dollar Index (DXY) weakened at the start of trading, falling to 103.77 before rising to 103.82 as support in DXY, the current higher-low, having remained for most of February according to traders and economist James Stanley’s remark.

The Federal Open Market Committee (FOMC) minutes were also highlighted by Stanley as a potential market trigger. The minutes, which are due on February 22, cover the February FOMC meeting, during which the Fed increase its benchmark interest rate by 25 basis points.

Michal van de Poppe, a Cointelegraph contributor and the CEO and creator of trading market Eight, had a more upbeat short-term outlook and was certain that the present drop will pass quickly.  

Markets are stabilizing, which is great news for those looking for entry opportunities. It could drop a bit further from here before we turn back. Week of stability before going forward,” he warned his Twitter audience.

His longer-term assessment from the day before predicted higher highs followed by a more significant fall, which was still expected to bring Bitcoin back to $20,000. He said Corrections are still only very modest.

Before a major fall, maybe even to $20–25K, I expect we’ll continue on our upward trend toward $35–40K. Maximize gains, start investing in the $USDT as we rise, and purchase during the downturn in the second half of 2023.