Bitcoin Reaches $23,000, Can We Rise Even More?

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Bitcoin hard afgewezen bij $20.000, deze prijs moet het nu houden

After a long period of a sideways and falling price, bitcoin (BTC) has suddenly risen sharply to more than $ 23,000 at the time of writing. It is possible that we are still in a bear market, so it is always important to check whether we are still in it or not, and what signs there are that indicate whether we are moving up.

Short squeeze or long-term growth?

It all started last week, when bitcoin seemed to have entered a major short squeeze. History shows that people buy when the price rises and sell when it falls. You can also go short, which will make you money when the market falls. Unfortunately, this also means that you can lose more than you put in. Many investors were forced out of their positions last week by margin callsafter which the price exploded.

Not much later it turned out that we could expect this volatility, because the price had not done anything for so long that tension was building. This was reflected by on-chain data, as it was also quiet on the blockchain. This could signal a new bull market. According to information from Coinglass are still there in recent days shorts liquidated.

On-chain data: room for bull market?

There are more signs that the bears on the road are slowly starting to disappear. According to an analyst on the quantitative research platform CryptoQuant, BTC addresses of whales (1,000 to 10,000 BTC) and sharks (100 to 1,000 BTC) have started buying again. Large investors usually know what they are doing a little better than small retail investors, who more often buy the top.

According to another analyst on the same platform, the amount of leverage in the market has plummeted since the FTX problems. After all, people were afraid that exchanges would go bankrupt. But despite the fact that BTC has risen sharply in recent days, this is not yet reflected in the indicators. That may mean that this increase is more sustainable than you might think.

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