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HomeMarketBitcoin Soars to 6-Month Highs. If the Rally Is to Continue, Watch...

Bitcoin Soars to 6-Month Highs. If the Rally Is to Continue, Watch This Price.

Bitcoin’s rally is back on.

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Rutmer Visser/Dreamstime

Cryptocurrencies soared Thursday, blowing past key price levels and causing carnage among traders with bearish positions as
roared to its highest level in six months. It looks like the bullish rally that began the year is picking up speed again.

The price of Bitcoin has risen 11% over the past 24 hours to more than $24,600, having popped above $24,800 in earlier trading. The largest digital asset is at its highest levels since last August, and firmly above the $23,000 range in which it had stagnated for weeks after a roaring rally to start the year. Bitcoin is now up almost 50% in 2023—though still a far cry from its late-2021 high near $69,000.

“It’s been a fantastic 24 hours for Bitcoin and one that could generate further enthusiasm for crypto,” said Craig Erlam, an analyst at broker Oanda. “While regulatory crackdowns continue to drive some unease, there’s clearly a growing sense of relief that the worst is behind it for the industry and 2023 could be a much better year.”

Indeed, digital assets are turning bullish in the face of regulatory storm clouds that continue to gather around crypto companies, with the Securities and Exchange Commission turning distinctly more aggressive in recent weeks. Bitcoin is also bucking its correlation to the stock market. The
Dow Jones Industrial Average
S&P 500
have floundered in recent days.

It’s possible that traders are actually taking the tough outlook for regulation in stride, betting that legal clarity on crypto in the U.S. will advance the industry at large rather than scare investors away. Regardless, this rally has wiped out almost $200 million in bearish positions over the past 24 hours, according to data provider Coinglass. This has come amid widespread “liquidations,” when brokers forcibly sell traders out of positions made with margin, or borrowed money.

Where does Bitcoin go next? 

As cryptos began to march higher from around $16,600 at the beginning of the year, analysts had speculated that $30,000 would be a key level for Bitcoin. That price would be its highest since early June, when the crypto credit crisis that led to a wave of bankruptcies and cascading prices began to gather steam.

For now, $30,000 is a long way off. There are closer targets for traders to eye. “The next big test falls around $24,500-$25,500, a break of which could convince any remaining doubters that the future is bright,” said Oanda’s Erlam.

Beyond Bitcoin,
—the second-largest crypto—jumped 9% to $1,700. Smaller tokens or altcoins exhibited similar action, with
up 6% and
11% higher. Memecoins were a bit more mixed, with
—which had its own, Elon Musk-inspired rally earlier this week—up just 3%, though
Shiba Inu
gained 6%.

Write to Jack Denton at jack.denton@barrons.com

Credit: marketwatch.com

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