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Market picture
Bitcoin jumped 7.2% to $19,000 on Thursday, a high that the first cryptocurrency has yet to trade in the last two months. The intraday growth consisted of two impulses. The first one was due to stop-orders triggering in the morning low-liquid market. The second came in the middle of US trading when markets decided on their reaction to the inflation report.
We also note that the first cryptocurrency added in 12 out of 13 days of the new year. Investors hope the bear market will be over with the start of the new calendar year. On the technical analysis side, BTCUSD has turned to the upside, rewrote local highs, and consolidated above the downtrend line from where there were down reversals in August and November.
However, yesterday's breakthrough does not mean there will be a rapid rise from here. From June to October, the area around 19k was strong support, and now it might be strong resistance.
According to Coinglass, the futures market was liquidated overnight for over $272 million in positions, over $189 million of which were short positions. The figure was the highest since November 10.
According to Glassnode, the bitcoin hash rate, smoothed by the 14-day moving average (14-DMA), reached a new high of 270.25 EH/s.
News background
El Salvador's parliament has passed a digital securities law allowing the country to raise funds with the world's first sovereign bonds on the bitcoin blockchain.
The Fed and banking regulators will continue to study the crypto industry and try to mitigate its risks, said Michelle Bowman, a member of the US Federal Reserve Board of Governors. She said the Fed doesn't want to discourage innovation and is thinking about the right way to regulate it.
Spot trading volume on centralised exchanges fell by 43% at once in December 2022 compared with November. On the futures market, the drop was almost 48%.
Avalanche, one of the top 20 cryptocurrencies, jumped 22% as altcoin developers partnered with Amazon to leverage Avalanche's ecosystem.
About the author
Alex Kuptsikevich is a financial market professional with 16-years’ experience and a senior financial analyst at FxPro. He is the author of daily reviews on the impact of economic events with comments featured in top international and Russian media. Alex covers fundamental analysis, global markets, the foreign exchange market, gold, oil, and cryptocurrencies in his analytical pieces. As the senior financial analyst at FxPro, Alex is a guest expert in 1-tier global media such as Forbes, Coindesk, Euromoney and Morning Star.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.