Over the last two weeks, bitcoin has been in the swing bullish trend, which allowed it to break through the $45K barrier. The flagship cryptocurrency closed at an all-time high on Friday, confirming that its bull run is not impulsive and random, but systematic and logical. The coin is now approaching the key resistance zone it is unlikely to break on the first try.
The cryptocurrency added 11% last week and climbed 1.5% yesterday. BTC is now moving in an extremely difficult area with lots of sell orders forming the resistance zone. The digital asset reached the $48.2K level, edged down, and formed a short upper wick yesterday. It managed to consolidate at $48K, confirming bullish bias. The coin has every chance to break through the key level today or tomorrow owing to short-term fixing and increased bullish activity. We may now say BTC has left the $32K-$45K range it has been traded in for 3.5 months.
The resistance zone is important because it can either confirm or reject the bullish breakout at $45K. BTC broke through the mirror level of $46K, but in order to stay firm there, the asset should consolidate above the mark. This will allow the price to extend the bull run to the $51K-$52K range with the key resistance level, which is also an important psychological barrier for the price.
Demand for cryptocurrencies increased owing to the better regulatory clarity on the crypto landscape. Thus, spot bitcoin exchange-traded funds could start to garner some approvals by mid-2023, according to Bloomberg. In addition, monetary policy tightening and sanctions are exerting pressure on investors making them seek the safest ways of storing and expanding capital. In this light, BTC is taking the lead, overtaking gold. Luna Foundation's recent purchase of BTC worth $1 billion aimed at maintaining the stability of its stable coin became the main driving force for the institutionalization of the cryptocurrency.
The geopolitical crisis has caused the movement of capital, and the price and on-chain activity of BTC went up. According to IntoTheBlock, the number of investors holding crypto for at least a year is now at its highest level. The balance of bitcoin on all exchanges continues to fall, reflecting increased demand for the digital asset as the bullish trend develops. This fact is also confirmed by the fear and greed indicator turning into the state of greed along with a rise in the price.
Bitcoin is now at the initial stage of the uptrend. The market is still cautious but the looming interest rate hike makes investors take steps. In this light, bullish activity is likely to increase if BTC/USD successfully breaks through the $51K mark and consolidates above it. In the meantime, the crypto market is to trade cautiously.
