Bitcoin traders should be thrilled because the main cryptocurrency trades near $25k. It’s a new excessive for the yr and a big growth for Bitcoin for not less than three causes.
First, with the latest motion, Bitcoin returns for the yr are near 50%. Contemplating that we’re solely in the course of February, that’s no small achievement.
Second, Bitcoin broke the earlier excessive whereas sustaining a sequence of upper lows. That’s indicative of additional energy.
Third, the latest upside got here in a complete divergence with the US greenback. The greenback gained after the inflation report launched final Tuesday, as seen by the USD/JPY buying and selling above 134 or the EUR/USD buying and selling under 1.07. However Bitcoin didn’t observe the identical path, diverged, and the worth exploded increased.
All these put the latest Bitcoin rally in a constructive mild. Furthermore, if we add that climbing near $25k Bitcoin invalidated a head and shoulders sample, the image is much more bullish.
What must occur for Bitcoin’s rally to proceed?
The chart above reveals Bitcoin’s efficiency in comparison with the EUR/USD. Whereas Bitcoin gained 49% YTD, the EUR/USD is nearly flat.
Bitcoin’s rally may proceed if the EUR/USD reverses its latest losses. When the EUR/USD dropped from 1.10 to 1.07, Bitcoin dropped from $24k to $21.5k. Now that Bitcoin rallied whereas EUR/USD didn’t, it is perhaps indicative of Bitcoin main the US greenback weak spot.
Due to this fact, Bitcoin traders might even see some extra beneficial properties ought to the EUR/USD reverse the latest losses and transfer again to 1.10, which is the excessive for the yr. If that occurs, one shouldn’t be shocked to see Bitcoin buying and selling near or above $30k.