Bitcoin Price Nears One-Month High As Buyers Accelerate

Bitcoin is growing. Within hours, BTC jumped 6% to nearly $73,000, the highest level in nearly a month. A strong signal in a still very turbulent macroeconomic context. Is this the start of a true bullish reversal?

Bitcoin price nears monthly high

No one really saw it coming. In the middle of Wednesday’s Asian session, with no particular signals in traditional markets, bitcoin suddenly took off, 5% in a few hours, $71,756 on the hour, according to TradingView. The level of BTC has not touched for almost a month.

But it’s not just a simple number. This rally was accompanied by a simultaneous breach of two levels that the market had been watching for weeks:

• The 200-week EMA, a long-term moving average that institutions follow as a compass
• $69,000, the previous all-time high of 2021, has turned into psychological support for millions of investors

Two crossings in one sitting. Enough to add weight to the rise.

For Lars Kooistra, a trader known on YouTube as The Composite Trader, this movement marks the completion of an “extremely extended accumulation phase”.

Now two scenarios open up: either an aggressive close above the upper range will trigger a liquidity hunt on the buyer side, or a false breakout will lead to a bearish reversal towards the lows. The market is at a turning point.

Trader Mustache is sincerely optimistic: “BTC’s journey to new all-time highs has begun. Altcoins will outperform.”

And the hours that followed proved him right. At the start of the US session, Bitcoin breached $72,000 before reaching nearly $73,000 in the session, an unprecedented level for several weeks. At the time these lines were written, BTC was trading at $72,890. The movement does not weaken. And the market is holding its breath.

Macroeconomics and geopolitics, the sword of Damocles

While the technical signal is encouraging, the global context remains tense. Since the closure of the Strait of Hormuz to merchant ships, traditional markets live to the rhythm of geopolitical news. Oil is soaring, inflation is rising again and the Fed is maintaining a wait-and-see attitude, all factors weighing on risk assets, including Bitcoin.

However, QCP Capital casts a shadow over this dark picture in its latest market color note. The trading firm acknowledges that bitcoin’s “new strength” could well signal a return to risk appetite in global markets. But he warns that new turbulence is expected next week ahead of a possible more general reversal.

As QCP reminds us, energy remains a pillar of the global economy. Its disruption mechanically affects inflation, business confidence and asset valuations. Bitcoin, often presented as a safe haven, still needs to prove itself in this role compared to gold, which has already benefited greatly from the tension.

At $72,000, Bitcoin plays a decisive role. Buyers have regained control, technical levels have been breached and accumulation signals point to a bullish continuation. However, as long as the Middle East remains under tension and the Fed holds its course, every green candle will have to earn its keep. The next move will say it all.

DISCLAIMER OF LIABILITY

The views, thoughts and opinions expressed in this article are solely those of the author and should not be taken as investment advice. Before making any investment decision, do your own research.