Bitcoin rallies, breaks $47,000! The "sideways consolidation" pattern will end
Bitcoin rallied strongly in early trading this morning, surpassing the $47,000 mark in an attempt to break out of the gloom of the past month or so and make a comeback.
According to CoinDesk data, bitcoin hit a high of $47,524.31 in early trading on Monday and $46,934.90 at press time, breaking out of a "stagnant" rally that has been going on since early January of this year, during which time it has hovered around $35,000 to $45,000.
Bitcoin is up 1.4% year-to-date (YTD) as the cryptocurrency price moves higher, while the S&P 500 is down 4.7%.
According to Bloomberg, Matt Maley, a market strategist at investment firm Miller Tabak + Co, said bitcoin should gain stronger upside momentum if it can "continue to break out in a meaningful way.
Bitcoin has been stumbling since the U.S. Federal Reserve (Fed) and other central banks have been pulling out of epidemic stimulus measures, reducing the flow of money into risky assets.
Even so, other cryptocurrencies such as bitcoin and ethereum have started to rise steadily this month, along with a broader uptrend in the U.S. stock market. But it wasn't until this past day that bitcoin really made a convincing case for breaking above $45,000.
Antoni Trenchev, co-founder of cryptocurrency lending platform Nexo, said
When we test the top of the 2022 trading range for the fifth time, which is another key moment for bitcoin, market conditions could change quickly as investors pour in and drive bitcoin prices higher. Perhaps it's time for Bitcoin to wake up from its 2022 sideways consolidation slumber.
In response to the renewed influx of money buying into the cryptocurrency market, which pushed bitcoin to $47,000 and ethereum climbed above $3,200, analysts at cryptocurrency research team MICA Research noted that
The current market atmosphere is quite optimistic, as investors have been blunted by the war in Ukraine and the US interest rate rise, the current capital push comes from the popularity of cryptocurrency applications, such as war zone hedging, NFT trading and other substantive applications, we are optimistic that the growth of the cryptocurrency industry will be more rapid in the second half of the year.