Bitcoin breaks above $24,000 for the first time in 2023

Bitcoin continues to see green in all short and medium time frames as the cryptocurrency recaptures lost ground. At the time of writing, BTC price was above the significant psychological barrier of USD 24,000 and appears poised to continue crushing resistance levels.

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BTC rally on the daily chart. Source: BTCUSDT trading overview

The magnetic forces that push Bitcoin upwards

Bitcoin has been in an upward trend since January 9. At that point, the cryptocurrency broke above the 200-day Simple Moving Average (SMA), a critical level that has historically acted as support and resistance during major market trends.

At these levels, big players choose to accumulate or take profits from their BTC holdings. When the cryptocurrency was below its 200-day SMA, the market took advantage of the low prices and began an aggressive accumulation, as shown in the chart below.

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BTC is seeing increasing accumulation similar to the 2019 market bottom. Source: Jarvis Labs

This accumulation resembles the 2019 BTC bottom that preceded 2021’s massive rally to new all-time highs. Retrieving the 200-day SMA predicted shifts in trends as well as market conditions.

According to Samson Mow, longtime Bitcoin supporter and CEO at Jan3, these levels have a major impact on the BTC market:

The Bitcoin 200 WMA is like a magnet. When the price is lower, it is an attractive force that pulls the price up. After we cross the 200 WMA, the polarity reverses and it becomes a repulsive force that pushes the price upwards.

What’s Behind the Bitcoin Rally?

A positive performance in the old financial markets, an improvement in macroeconomic conditions as the US Federal Reserve announced a 25 basis point (bp) and spike in BTC spot trading volume. These three factors support what appears to be a continuing trend through 2023.

After a long period of selling pressure, downward price action and accumulation, the bulls seem poised to take over the market. In the short term, Bitcoin could move higher towards the $30,000 region if the trend continues.

According to economics Alex Kr├╝ger, BTC market participants could see some resistance at those levels before resuming bullish momentum:

(…) Breaking through 30k and then pulling back would be normal market dynamics. Markets tend to go through major round levels, trigger stops, reel in suckers and then flush them out. And 30k-35k looks good.

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