Is it secure to purchase Bitcoin now that it has made a brand new excessive for the yr?

Bitcoin traders should be thrilled because the main cryptocurrency trades near $25k. It’s a new excessive for the yr and a major improvement for Bitcoin for a minimum of three causes. 

First, with the latest motion, Bitcoin returns for the yr are near 50%. Contemplating that we’re solely in the course of February, that’s no small achievement. 

Second, Bitcoin broke the earlier excessive whereas sustaining a sequence of upper lows. That’s indicative of additional power.

Third, the latest upside got here in a complete divergence with the US greenback. The greenback gained after the inflation report launched final Tuesday, as seen by the USD/JPY buying and selling above 134 or the EUR/USD buying and selling under 1.07. However Bitcoin didn’t comply with the identical path, diverged, and the worth exploded increased. 

All these put the latest  Bitcoin rally in a constructive mild. Furthermore, if we add that climbing near $25k Bitcoin invalidated a head and shoulders sample, the image is much more bullish. 

BTCUSD chart by TradingView

What must occur for Bitcoin’s rally to proceed? 

The chart above exhibits Bitcoin’s efficiency in comparison with the EUR/USD. Whereas Bitcoin gained 49% YTD, the EUR/USD is nearly flat. 

Bitcoin’s rally would possibly proceed if the EUR/USD reverses its latest losses. When the EUR/USD dropped from 1.10 to 1.07, Bitcoin dropped from $24k to $21.5k. Now that Bitcoin rallied whereas EUR/USD didn’t, it is likely to be indicative of Bitcoin main the US greenback weak spot. 

Subsequently, Bitcoin traders might even see some extra features ought to the EUR/USD reverse the latest losses and transfer again to 1.10, which is the excessive for the yr. If that occurs, one shouldn’t be stunned to see Bitcoin buying and selling near or above $30k.