Bitcoin breaks through resistance, the cryptocurrency market in 2023 shows clear signs of recovery

Entering 2023, the cryptocurrency market is showing notable signs of recovery. Instead of just a single asset rallying, the widespread recovery across the entire market from Bitcoin, Ethereum, Solana to XRP indicates that investors’ risk appetite is gradually returning.

Technical Movements Observed on the Charts

Most notably, Bitcoin has just broken above the short-term downtrend and established a position above the 50-day moving average. According to analysts, the key turning point is not the price increase itself but how the market handles the correction level. The price has retested this same level but remains higher, which often indicates strength in technical analysis rather than weakness.

Similar behavior appears on the charts of Ethereum, Solana, and XRP, further reinforcing that this recovery is not an isolated phenomenon. Another important point is the formation of higher highs and higher lows on the charts, a classic sign of a trend reversal process.

Investors Shift Towards Higher-Risk Assets

The improved performance of altcoins relative to Bitcoin, along with the slight decrease in Bitcoin’s market share, clearly reflects a change in investor sentiment. They are increasingly willing to take on higher-risk positions, an important sign that confidence is gradually returning to the market.

Key Milestones Coming Up Will Determine the Trend

The 200-day moving average, currently around $107,000, will be the next critical support level to watch. During previous strong bull phases, prices often stayed above this level. However, the upcoming test will serve as concrete evidence of whether this recovery is sustainable or just temporary.

Looking at the weekly timeframe, the picture is more complex. If Bitcoin cannot hold the 50-week moving average, history suggests deeper corrections may occur. The next support level is identified at the 200-week moving average, currently around $60,000.

Increasing Attention from U.S. Investors

An indirect but important indicator is that Bitcoin prices on major U.S. trading platforms are higher than on other exchanges. This suggests that demand from U.S. investors is picking up again. History shows that major bullish runs in the crypto market often start from the attractiveness of investors in the Pacific Northwest.