Bitcoin is out of the woods and all set to mark new highs for 2023

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Bitcoin (BTC) left everyone surprised and created a new high of 2023. The crypto total market capitalization has surged above $1.14 trillion last week. The S&P500 closes positive which turned the overall financial market’s sentiments bullish.

In this article, I will share a detailed analysis of bitcoin (BTC), Ethereum (ETH,) and S&P500

Bitcoin (BTC) Price Analysis

Bitcoin, The largest cryptocurrency by market cap soars 27.17% last week. After spending months in the accumulation phase BTC finally break out of the side waves channel it was trading in.

According to the data from Tradingview, BTC is changing hands at around $28000 at the time of writing. Bitcoin closes last week at $27972,

Currently, Bitcoin is above the major weekly support and major weekly moving averages. BTC closes above the 50 weekly moving average for the first time in 2023. Historically, Whenever BTC closes a weekly candle above the 50 weekly moving average it confirms that bitcoin has hit the bottom and the trend has been revered.

$25300 will work as strong Support for bitcoin in the coming days whereas the first major resistance for bitcoin is at $31800. Traders may book some profit at this price point. However, if bitcoin closes a week above $31800 the rally will continue toward $47000.

Bitcoin has successfully broken out the neckline of the inverted Head & Shoulder that is targeting $47000, we noticed this pattern and updated on our website earlier last month.

According to the data from alternative dot me, the crypto fear & greed index that was neutral last week has turned into greed which means traders are bullish now. We can see some corrections any time in the coming days as RSI is showing an overbought situation for the BTC on the 4-HOUR Time frame.

Crypto Total Market Capitalization

The crypto total market capitalization came below $1 Trillion earlier this month, and is $1.14 trillion as of now, marking this the highest crypto market cap of the current year.

Unfortunately, the crypto total market was unable to close above the weekly resistance that it is facing near $1.15 trillion. This is the point of concern for some traders before going full into the market. But. The positive side is that the crypto total has also been above the 50 weekly moving average.

The crypto total market cap is expected to retrace at $1.07 trillion in the coming if it breaks above $1.15 trillion.

Ethereum (ETH) Price Analysis

Ethereum, the second largest crypto by market cap has also broken above the weekly resistance of $1770. According to the data from Tradingview, ETH is hovering at around $1755 at the time of writing.

Fortunately, ETH comes above the major weekly resistance but unfortunately, the breakout is looking weak. Unlike the BTC breakout, ETH’s breakout is lacking volume that will sustain the prices at higher levels.

For this reason, ETH will grow as the BTC price will rise but will not outperform BTC as it has been doing historically.

If ETH successfully holds above $1770 for a few days the next target will be $2000 and the major support for ETH will remain at $1560.

ETH/BTC

Ethereum in the BTC pair is bleeding as bitcoin dominance is rising, it’s a normal function of the market when BTC’s prices rise the BTC dominance rises along with it. And other cryptocurrencies lose their value against BTC.

ETH in the BTC closes bearish last week. ETH prices in the BTC pair are at 0.063 BTC at the time of writing. The major support for ETH in the BTC pair is 0.053 BTC and in the worst case, it can fall as low as 0.029 BTC.

S&P500

Despite the bearish opening of the last week, S&P500 closes bullish. At the time of writing the S&P500 is at 3939. The optimism about the stock markets can be seen the last week’s volume candle. Last week’s Volume was the highest volume after June-2020

A bug volume bar after a prolonged bearish period indicates that the bulls are taking charge now. It is also a signal for the trend reversal.

The bullish crossover has happened in the major moving averages but temporarily index is below the 20-50 weekly MAs.

However, the traders are waiting for the last confirmation about the proper trend reversal. This confirmation will happen when the index will close a few weeks in the line above the 20 weekly MA.