The Bitcoin (BTC) bear market of 2022-2023 was a doozy. Having also held Bitcoin through the Bitcoin bear market of 2018-2019, I can attest that this one was just as painful despite being slightly shorter and having a less dramatic maximum drawdown.

Bitcoin's rally accelerated late Wednesday after hitting $29K but ran into strong resistance as it approached $30K (the level passed on some exchanges). The inability to break above this level triggered a massive wave of capitulation. It quickly, but not for long, pushed the price back to $27K, the price at the start of the week. By Thursday morning, buying prevailed again, returning the price to $29K.

On a broader picture, the bulls have managed to push the price above the 50-day moving average, which is pointing up from $27K on Monday to $27.4K. At the end of March, the market bought Bitcoin near this level. In other words, we have strong indications that the first cryptocurrency maintains its uptrend.

Financial news is also helping the buying. The rally comes on the heels of reports of the stock collapse of troubled First Republic Bank, which was bailed out in March. Another bout of capital preservation fears has brought attention back to crypto.

Bitcoin is still a speculative asset that is highly volatile to sudden swings by nature and enthusiasts can look to manage risk by waiting to see if Bitcoin can successfully surpass the $30,000 handle. A clean break above $30,000 is required for enthusiasm to return to buying momentum.

Bulls on bitcoin have completely dominated

Apr 27 2023