As of the 15th of February 2023, Bitcoin has roared back past $24k after surging more than 10% in the past 24 hours, reclaiming all declines since the beginning of the month. Over the past 24 hours, Coinglass data shows that total liquidations on Bitcoin had reached $65m, with some 90% of that being short from positions.

The pump has occurred despite the intensification of regulatory scrutiny from the SEC. Last week, crypto Exchange Kraken had agreed to a $30m settlement with the US regulator and shutting down its entire US staking operations. Just 3 days later, the US SEC has announced its intention to sue the stablecoin issuer Paxos over the BUSD, claiming that the Binance-branded stablecoin is an unregistered security. Clearly, the market’s contrarian bullishness indicates that increasing regulatory clampdowns have been ebbed and priced cryptocurrencies.

Other news revolved around Tuesday’s US CPI data which showed that inflation had surged by 6.4% in January YOY, a figure higher than expectations. Typically, high inflation spurs further rate which are detrimental to risk assets like crypto. Yet, it is clear than investors have seen a silver lining in the slight decline on an annual basis, nonetheless.

Today’s market rally marks BTC’s highest daily gain since its November lows and can be seen to indicate that fears of inflation, rate hikes and increasing regulatory clamping are being shrugged off. While there is no single catalyst for today’s pump, it certainly represents a sign of strength in the cryptocurrency market.

Simultaneously, the bounce comes following Bitcoin’s test of its daily 200 EMA support. Current price charts seem to resemble those leading into the 2019 bull market with the monthly MACD set up for a bullish cross. Resistance levels will present at the $25,000 level as August heights and the weekly 200 EMA are tested. A break of this level could see BTC rally toward $30,000.

Unfavourable market conditions? Bitcoin roars back past $24k

Feb 16 2023