Source: Bitcoin BTC
- The positive GDP numbers for the US economy in Q4 2022 indicate investor optimism and could support the upcoming Bitcoin rally.
- BTC price has enabled a breakout above all three cost bases for the first time since 2019.
Economists around the world have been keeping a closer eye on all developments in the United States. Earlier this week, the world’s largest economy unveiled its GDP data for the fourth quarter of 2022, beating forecasts.
US GDP was 2.9 percent in the fourth quarter of 2022, beating the market expectation of 2.6 percent. The latest data shows that the US economy is continuing to grow, albeit at a slower pace than in the third quarter, when GDP grew 3.2 percent. Still, the market is bullish on Q4 GDP numbers despite several reports that retail sales fell late last year.
With the GDP numbers coming in better than expected, this could lead to better performance in Wall Street and ultimately in the crypto space. Therefore, it could prove bullish for Bitcoin and the broader crypto market.
Bitcoin bulls have been showing quite a bit of activity since the beginning of the month as the BTC price is already up 33 percent in January. Earlier this month, BTC price also surged above $23,000, however, it appears to be a resistance zone for now.
Bitcoin on-chain indicators
Amid Bitcoin (BTC) price’s recent rally, the Bitcoin Fear and Greed Index has surged to 55/100. This is the first time the index has entered the greed zone since March 2022, mitigating somewhat the risk of contagion from the fall in FTX and Genesis. However, it’s still pretty much on the low end of the greed zone and doesn’t necessarily mean the bitcoin party ends there.
Bitcoin Fear and Greed Index is 55 – Greed
Current price: $23,033 pic.twitter.com/OAt0TakkZR
— Bitcoin Fear and Greed Index (@BitcoinFear) January 27, 2023
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At press time, Bitcoin is trading at $22,883 with a market cap of $441 billion. This is the first time in three years that Bitcoin has achieved a breakout at all three realized prices. On-chain data provider Glassnode explained:
The Recent Rise #Bitcoin Price action has led to a first breakout across all three cost bases for the first time since the 2018/19 bear market and Covid crisis in March 2020. Sustained duration above these key psychological levels would be viewed as constructive.
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Courtesy: Glassnode
In addition, the recent bitcoin price rally has also helped short-term oriented investors or those who are down on average. Data from IntoTheBlock shows that 61% of Bitcoin holders are currently making profits, while only 36 percent are making losses.
If BTC price sustains above $23,000, it could further take the rate to $25,000 and even higher.
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