By market capitalization, Bitcoin, the first and biggest cryptocurrency, is about to end its finest quarter in precisely two years.
If Bitcoin can end Friday’s session at or above its current levels in the $28,200 range, it will have increased by a staggering 70% since the year’s beginning.
Bitcoin in Q2
Bitcoin’s price doubled from slightly above current values to close to $59,000 in Q1 2021. Bitcoin reached its highest-ever quarterly closing level after Q1 2021.
The unexpected resurgence of Bitcoin in 2023 coincides with a more favorable macro environment. Bets on the Fed tightening have decreased recently due to worries about the health of the banking industry, which has in turn led to a demand for “hard money” like rare metals and tested cryptocurrencies like Bitcoin.
- Bitcoin, is about to end its finest quarter in precisely two years.
- Bitcoin had become oversold last year and the bear market bottom is now likely in.
- The window of opportunity for a rally above $30,000 in Q2 for BTC
Since various technical and on-chain signs have been indicating in recent months that Bitcoin had become oversold last year and that the bear market bottom is now likely in, it is also likely that mean reversion and improvements in Bitcoin’s on-chain health have contributed to the 2023 rally.
Investors are speculating about what Q2 2023 might contain for Bitcoin after the largest cryptocurrency in the world defied the bears in Q1 2023.
Since Bitcoin’s hugely significant bounce from its 200-Day Moving Average and Realised Price under $20,000 earlier this month, which also happened to coincide with another retest of the downtrend from the Q4 2021 and end-Q1 2022 highs, things have been looking good for the medium-term technical outlook.
The 21DMA is higher than the 50DMA, which is higher than the 100DMA, which is higher than the 200DMA, and all of Bitcoin’s main moving averages are pointing higher and have crossed each other in a bullish manner.
As a result, the window of opportunity for a rally above $30,000 in Q2 and a retest of the crucial $32,500–$33,000 resistance region appears to be wide open.