Crypto Market Rallies as Bitcoin Breezes Past $47,000 – Bitcoin 2022 Bull Run?
Welcome back to the Tribe! In this post we dive into the recent Bitcoin recovery and potentially take a look at a Bitcoin 2022 Bull Run.
Nothing should be considered investment or financial advice. Enjoy the ride!
Bitcoin 2022 Bull Run
The entire cryptocurrency market has grown over the last 7 days as over $200 billion flowed into the market. Bitcoin has so far led the charge during the latest market-wide recovery since the major dip in December 2021.
As of the time of writing this report, Bitcoin has sustained levels above the key $46,000 resistance point. With a fury of cash injections in the market, BTC bulls could target ranges above $50k to extend the current relief period.
Is Recovery The Start of The 2022 Bull Run?
After hitting an all-time high of $68,000 on Wednesday (November 10, 2021), the world’s leading cryptocurrency Bitcoin failed to hit the $100k price prediction for the year and serve as the catalyst for the much-expected bull run.
Following an unforeseen price crash, Bitcoin fell back to the $40k range, triggering a widespread decline across the entire cryptocurrency market. Market leaders like Ethereum and Solana also fell by more than 50%.
Since then, BTC slipped into a consolidation pattern for about 11 months. The leading digital token ranged between $30,000 – $42,000, failing to break key resistance levels and maintaining support.
However, after smashing resistance at $46k, breaking an 11-week relative strength index (RSI) trend pattern, and some positive news, BTC regained some lost ground and is currently trading at over $47,000.
In the last 24 hours, Bitcoin has gained over 6% while altcoin competitors like Ethereum, BNB, Solana, and Luna have taken a cue from the leading crypto and surged as well. ETH in particular has reclaimed its $3k throne, gaining 7% over the last day, and currently trades at $3400. Smaller cap alts like SHIB also partook in the broad-based recovery experienced by the market.
Finally, the total cryptocurrency market cap has exceeded $2 trillion. As of today, more than $200 billion has flowed into tokens with a majority of that cash injected into Bitcoin’s rally. While crypto proponents and token holders bask in the ongoing market relief, short traders experienced another point of pain. According to data from on-chain aggregator CoinGlass, short liquidations in the last 24 hours have crossed an estimated $455 million. One short position was supposedly as large as $10 million.
Can Momentum Continue
At the moment, sentiment and technical analysts are split across two opposite theories. Some proponents opined that Bitcoin buyer pressure has significantly increased following news from Russia and Terra CEO Do Kwon.
Russia announced plans to accept BTC as a payment method for its oil and gas resources while Terra aped into Bitcoin with a $3 billion bag earmarked for securing UST reserves.
Other TA’s highlighted that Bitcoin’s RSI has reached overbought territory and could trigger a sharp price retrace. The $42k mark has been identified as a key support level if this theory proves to be true.
Other News – Russia Crypto Mining
Russia is looking towards cryptocurrencies in the face of biting economic sanctions. This is evident with the recent call by its official for crypto mining to be legalized as soon as possible. This and the decision to receive payment for oil and gas in bitcoin is a major shift from the federation’s position on cryptocurrencies a few months ago.
Bitcoin 2022 Bull Run News
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The first-ever Bitcoin x Gold exchange-traded product was launched by a collaboration between ETP issuer 21 Shares and ByteTree, an asset management heavyweight. Dubbed BOLD, the fund will debut on the Swiss exchange SIX. BOLD is split with an 18.5% BTC and an 81.5% Gold sharing formula. An algorithm that leverages 360-day historical volatility data will rebalance the fund on a monthly basis.
Bitcoin becomes an acceptable means of payment for the first time in the continent of Africa. Legislators from the Central African Republic recently approved the bill to legalize crypto in the country. The country joins El Salvador in a shortlist of countries with Bitcoin as legal tender.
It’s possible that the CAR could draw scrutiny from international financial bodies and sovereign governments from adopting Bitcoin on a national level. Organizations like the European Union and IMF have been critical regarding widespread crypto adoption in recent times.
