• Bitcoin (BTC) closed the day close to where it began on Tuesday, hovering at $22,870.
• Investors are curious as to where Bitcoin might head next, in part affected by the anticipated GDP figures.
• Bitcoin has been on an upward trend since November 21st when it fell to a new yearly low of $15,476.
The cryptocurrency market experienced a period of bullishness and consolidation on Tuesday, as Bitcoin (BTC) closed the day close to where it began the session. At the time of writing, the premier cryptocurrency was hovering at around $22,870, which has not affected the excitement surrounding the token as investors are more curious than ever as to where Bitcoin might head from here. This curiosity is in part affected by the anticipated Gross Domestic Product (GDP) figures for Q4 2022, which are set to be released on Thursday, followed by consumer sentiment data the day after.
The bullishness of Bitcoin has been increasing since November 21st when it fell to a new yearly low of $15,476. After creating a higher low, Bitcoin accelerated its rate of increase on December 30th and then, on January 13th, the price broke out from a long-term declining resistance line in place for nearly six months. This breakout was further strengthened by a Relative Strength Index (RSI) movement above 70, which usually signals strong buying pressure.
The price action of Bitcoin over the last few weeks has been largely positive, with the token rising to a new all-time high of $23,134 before pulling back slightly. However, there is still a high level of buying interest as investors are optimistic about the long-term prospects of cryptocurrency, as well as the impact of the upcoming economic data.
The volume of Bitcoin trading has also been rising steadily over the past few weeks, which is a clear sign of active participation from both institutional and retail investors. This could indicate that the current bull trend could continue into the near future, and that the upcoming GDP figures could be an important catalyst in pushing the price of Bitcoin even higher.
At this point, it is difficult to predict how the price of Bitcoin will react to the upcoming economic data. However, regardless of the outcome, it is clear that the cryptocurrency is well positioned to benefit from any positive news, and that the long-term bullish trend is likely to remain intact.