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Bitcoin Currently at $21,945, Will it Jump Above $22k? Analysts Share Their Thoughts

Tyler Irvin

Summary: Bitcoin is about to retest the resistance at $22,000, currently trading at $21,945, good for a 5.30% increase in the last 24 hours, while Ether is up 0.78% with a value of $1,225, according to Bitpush Terminal data.  Bitcoin and Ether’s modest gains to start Friday come after a strong Thursday from the US stock ...

Bitcoin is about to retest the resistance at $22,000, currently trading at $21,945, good for a 5.30% increase in the last 24 hours, while Ether is up 0.78% with a value of $1,225, according to Bitpush Terminal data. 

Bitcoin and Ether’s modest gains to start Friday come after a strong Thursday from the US stock market, which saw the S&P 500 index gain roughly 1.5%, marking its fourth consecutive net positive day. 

The positive start to crypto on Friday also comes two day after FTX’s CEO and founder, Sam Bankman-Fried said his company has a couple of billion dollars to spare to help salvage the struggling industry. His crypto-trading firm Alameda Research recently gave crypto lender Voyager Digital a $200 million cash and stablecoin revolving credit line, before the lender eventually decided to file for bankruptcy. Bankman-Fried is just one of many analysts who have stated the worst is behind us. 

Bitcoin once again finds itself in another long consolidation period of about three weeks, staying between $18,000 and $22,000. The last time Bitcoin experienced a long consolidation period, Bitcoin dropped by about $10,000. However this time, Galaxy Digital CEO, Mike Novogratz, suggested the worst is already behind us. 

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"It feels like we're 90% through that deleveraging," he said in an interview with CNBC. "The problem is for you to go much higher, you need the narrative to go much higher and you need new capital to come in."

For now, Novogratz expects this “choppy sideways” action to continue for awhile, until the Federal Reserve pulls back its monetary tightening or until the previous damage inflicted on the crypto market has healed. 

Coinbase Premium

Taking a different approach to her Bitcoin analysis, Ki Young Ju, CEO of CryptoQuant.com, pointed to the Coinbase premium as one sign the market is recovering from its recent tumultuous run. 

The Coinbase premium refers to the gap between the spot price of Bitcoin on Coinbase versus the same metric on Binance. It is believed that most US institutions use Coinbase to make their Bitcoin purchases. A rise in premium suggests that American financial institutions are accumulating Bitcoin once again. 

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Ether and Alt Coins to Follow Suit

The good news for Ether and alt coins is that when Bitcoin rises Ether and alt coins usually follow. ETH peaked at just over $4,900 in November and then proceeded to gradually decrease over the ensuing eight months. 

That eight months is the same eight months in last cycle’s bear market which saw ETH drop from $1600 to $160, which is a roughly 90% price drop. Right now ETH is down 74% and could be at the bottom of this current bear market.

Fear and Greed Index

Despite potentially positive signs from the market and analysts, the fear and greed index for Bitcoin and other large cryptocurrencies is at “extreme fear” with a value of 20. That is higher than yesterday’s 18, last week’s 11 and last month's 17. 

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Perhaps the industry is still dealing with the ramifications of the Terra Network’s collapse, which saw their two, once prominent cryptocurrencies, UST and LUNA, lose 99% of their value in the course of a week. 

In addition, Three Arrows Capital and Voyager have declared for bankruptcy, while Celsius Network is going against their lawyers' recommendations of filing their own bankruptcy claim. Celsius was able to recently pay off its remaining loan from MakerDAO, which freed up $440 million in Bitcoin.

Author: Tyler Irvin

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