Despite significant volatility throughout the year, Bitcoin has recovered a significant portion of its losses from the 2022 market crash.
Bitcoin’s price is currently over $38,200, representing a 130% increase from its value on January 1, 2023. While this recovery is noteworthy, crypto has recently experienced fluctuations.
Some market analysts believe Bitcoin’s current rise is only the beginning and that it will soon reach new highs. The impending halving and the potential approval of a spot Bitcoin ETF in the United States are cited as potential catalysts for the next bull run.
Analysts have noticed an interesting trend in Bitcoin velocity, a metric that indicates the cryptocurrency’s trading volume.
According to Bitfinex researchers, the current Bitcoin velocity differs from the average seen during the previous bear market in 2018–2019.
This low velocity indicates that crypto investors are hesitant to sell, whereas buyers are actively seeking new supplies.
As per Bitfinex analysts, Bitcoin’s series of higher lows indicates the possibility of a price breakout. When Bitcoin surpassed the $35,000 barrier earlier this month, the market experienced significant price movement.
Despite meeting resistance above $38,000, the price continued to rise.
According to the most recent CoinMarketCap data, Bitcoin is currently trading at $38,238, representing a 4.37% increase in the last 24 hours.
The trading volume has also increased by 27.04%. On November 27, the recent rally began after finding support at $36,790.
Analysts believe that if Bitcoin can successfully break above the $38,320 level, it will continue to rise and test the $40,600 resistance level.
A drop below $37,720, on the other hand, could result in a test of the $37,200 support level. The next few weeks will most likely determine Bitcoin’s trajectory and whether it can maintain its bullish momentum.