Bitcoin has been in a downward trend since November 2021 after it reached its all-time high of $69,044.
The market has suffered as a result of Bitcoin's volatile price fluctuations and the subsequent bear market.
In November 2022 Bitcoin went under $16,000 and seemed ready for another downturn before blasting off on January 4, 2023, from $16,674 to $21,180 by January 17. Many traders are wondering what this means for Bitcoin and whether the market's condition is improving.
Bitcoin and the bear market
The FTX-Alameda collapse took down multiple crypto projects from FTX and Alameda themselves to BlockFi and Genesis. Solana dropped sharply amid the scandal but has recently recovered some ground thanks to Bonk, a meme coin launched on the Solana network.
The Terra Luna collapse also contributed to the market's decline by eliminating billions of dollars from the crypto market and wiping out traders from all over the world who were impacted by Luna's -99% drop.
During the Luna collapse and the FTX-Alameda affair, Bitcoin's price fell further or remained constant for a few weeks before plummeting significantly. Bitcoin fell from $21,282 on November 6, 2022, to $15,742 by 10 November 2022.
Why is Bitcoin going up?
As of January 17, Bitcoin is a few USD away from passing its November 6 $21,282 price after being in the dumps for almost two months. Despite the +26% climb over the past 30 days, many seasoned crypto traders are calling Bitcoin’s strength a bluff.
Many Bitcoin traders and charters have described the recent surge as a temporary burst of momentum that will eventually lead to Bitcoin plummeting below $15,000.
According to recent market events, there doesn't seem to be a particular reason for Bitcoin's recent price increase.
Traders are taking advantage of Bitcoin's unpredictable upward momentum to make some extra profits before the anticipated next move down in the coming weeks.
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