This is the highest level that Bitcoin has reached ever since January 4. As it breaks the $44,500 resistance, which has seen a rejection 3 times this year, is a bullish sign for this cryptocurrency.
After seeing repeated higher lows this year, this breakout might corroborate the falling wedge pattern on the daily chart. However, although technical analysis can provide useful trading signals for the short term, it is not necessarily a trustworthy indicator for long-term investing, since there is no exact science to it. For a complete picture of why Bitcoin may be on the rise, we should investigate other socio-economic factors.
This year has seen a lot of positive news for crypto, which has made headlines around the world, from donations to aid Ukraine following its war with Russia, to positive attitudes towards digital assets from European and American legislators.
Many people believed that we had transitioned from the era of crypto prospecting to a new period when people gradually adopt the use of cryptocurrencies and blockchain technology will be more mainstream. Even if Bitcoin is currently down 30% from its all-time highs, it has shown stable growth in 2022 with relatively low volatility by its own standards. Its correlation to the S&P500 has recently reached a 17 month high, an indicator of its stability.