Bear markets are gruesome and they test the conviction of even the most ardent long-term investors. That is what happened in 2022 as Bitcoin fell 65% and Ethereum, which pulled off the Merge, a shift from proof-of-work to proof-of-stake, without any major glitch, fell by 67%.

Dubbed as the Ethereum killer, Solana, plunged more than 94% in the past year. This shows the kind of carnage that crypto investors had to weather. One of the major reasons for the bear market was the aggressive monetary tightening by the United States Federal Reserve.

The central bank went into damage control mode as inflation in the US skyrocketed to a 40-year high of 9.1% in June 2022.

We mentioned in our previous analysis that if buyers drive the price above the moving averages, Bitcoin could reach $17,568 and that is how it played out. The BTC/USD pair rose to $17,396 on January 9, which attracted selling by the bears as seen from the long wick on the day’s candlestick.

The 20-day exponential moving average (EMA) has started to turn up and the relative strength index (RSI) has jumped into the positive territory, indicating that buyers have a slight edge. If the price turns down from the current level but rebounds off the moving averages, it will suggest buying on dips.

That could increase the likelihood of a break above the overhead resistance. The pair could then rally to $18,385 which may act as a strong obstacle. Another possibility is that the price turns down and breaks below the moving averages. In that case, the pair could oscillate between $17,568 and $16,273 for a few more days.

Lastly please check out the advancement’s happening in the cryptocurrency world.

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