Bitcoin Price Has Jumped to a Multi-Month High: Potential Bull Trap?

Bitcoin price has staged a strong recovery in the past few days despite lingering bank fears. BTC has jumped more than 30% in the past week and more than 60% in the year to date, wiping out its recent losses. BTC, the largest cryptocurrency by market cap, has been among the best-performing cryptocurrencies.

Fundamental Analysis

Bitcoin price has been on a strong bullish momentum for the past few days despite the widespread bank contagion fears. Over the last day, BTC’s total market cap has increased by nearly 8% to $512 billion, while the total volume of the digital asset traded increased by more than 8%.

The global cryptocurrency market managed to end its recent losing streak and gained ground, as Bitcoin and Ethereum led the charge. The global crypto market cap has climbed to $1.14 trillion over the last day, while the total crypto market volume increased by 4%. Bitcoin’s dominance has also inched higher in the last 24 hours to 45.19%.

Despite the bullish sentiment in the crypto market, some analysts remain skeptical and believe that the current trend could be a bull trap fueled by positive sentiment. The recent crash in Silvergate Bank and Silicon Valley Bank has raised liquidity concerns in the markets.

Traders have continued to digest the future of Credit Suisse as the bank’s crisis continues to weigh on investors. The lender said that it would borrow $54 billion from the Swiss National Bank under a covered loan facility and a short-term liquidity facility.

 The recent collapse in the banking sector highlights the vulnerability of traditional financial institutions. As such, customers have shifted their focus to digital assets as the collapse of big bank stocks continues to weigh on markets.

Bitcoin Price Prediction

Bitcoin price has staged a strong comeback in the past few days as the trading volume in the crypto markets inch higher. On the daily chart, the BTC price has moved above the 25-day, 50-day, and 100-day moving averages. It has also moved above the 50-day and 200-day exponential moving averages, while its Relative Strength Index (RSI) hovers slightly below the overbought zone.

As such, the BTC price is likely to extend its bullish trajectory in the future as it holds above the important level of $25,265.50. The next resistance level to watch will be $28,500. However, a move below the key level of $24,000 will invalidate this view.

BTC Price Chart

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