Daily News | Bitcoin Eyes $28K Target After Bullish Cross Forms While Global Economy Teeters On A Recession

2023-01-27, 01:40

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![](https://gimg2.gateimg.com/blog/166563293266894988220221013-114826.jpeg)

**<font size=3>[TL; DR]</font>**

🥂 Good morning, today is Friday, Jan. 27th, 2023. We hope you guys have had a positive week and are looking forward to the weekend! It’s going to be yet another great day – so let’s get right into it!

**Macro:** After a relatively decimating day yesterday, the global equities market appears to have made a minor recovery in the past 24 hours, with very minimal gains across the top US equities markets standing out against the crowd. This comes in light of data releases suggesting that the US economic growth was stronger than expected. However, the global economic stage is still subdued and seemingly ready for a recession.

**Crypto:** The total market cap according to Coinmarketcap is $1.05T, having fallen by 0.10% in 24 hours. In light of yesterday's bullish resurgence, the market has extended this positive sentiment, with a majority of the top 20 assets gaining between 1-13% across the past 24 hours. Polygon saw the most growth today, accelerating by over 12% and breaking above the one-dollar threshold.

**Topic of the Day:** [Bitcoin](https://www.gate.io/trade/BTC_USDT) Eyes Up $28K As Bullish Cross Forms

**Notable Headlines:** ADA bulls anticipate $1 as the Djed stablecoin is scheduled for launch next week; Coinbase fined $3.6 million by the Dutch Central Bank; Polygon surges by over 12% amid a spike in transactions; Proof-of-stake giant, Clover, has teamed up with Strike to bring [Bitcoin](https://www.gate.io/trade/BTC_USDT)’s Lightning Network to millions of merchants across the world; FTX bankruptcy lawyers pursue SBF’s family in the hunt for more assets to repay his obligations.

**Macro at a Glance:** US Economy Performance Exceeds Expectations As The Rest Of The World Teeters On A Recession – Will This Weakness Persist?

The past few days have introduced a rapid onset bearish slant to the current market space following high hopes of recovery at the start of the week. With an onslaught of red candlesticks across the FX and global equities markets, as well as data releases courtesy of the Q4 Global Economic Conditions Survey (GECs) suggesting various indicators remains weaker than a year ago, the current global economic stage appears subdued and ready to enter a full-on bear market, or worse – a recession.

Amidst growing concerns of an international recession, recent data releases from the US have confirmed that the economy’s performance in Q4 of 2022 exceeded expectations, in spite of higher borrowing costs and the rising cost of living. It was reported that the economy grew at an annual rate of 2.9% in Q4, a decrease of 0.3% from the previous quarter due to falling home sales and the construction industry volume declining. Some analysts are still concerned that this news may be indicative of an incoming recession, particularly as retail sales dropped by 1.1% from November to December. In addition, the report shows that housing investment, which is sensitive to interest rates, is falling at an annual rate of 27% and is primarily contributed to through the construction of new homes. However, US unemployment figures hover near historic lows, showing that regardless of the economic state of the country, the jobs market is resilient. This could potentially show that there is strength behind the US economy and could potentially provide a source of strength in the coming months, which could lead to a gradual u-turn of the bearish economy.

In more neutral news, the recent Q4 Global Economic Conditions Survey (GECS) demonstrated signs of economic steadying, even as many indicators remain weaker than a year ago. However, it was shown that the GECS Confidence Index bounced back slightly for the second consecutive quarter, which is reflective of hopes that the worst of the central bank tightening on restrictions and rate hikes may soon be over. Despite this more positive reading, the Confidence index still remains below its median reading for the period since 2012. In addition, new orders, capital expenditure (CapEx), and employment indicators remain consistently below the median, with new orders and employment demonstrating a consistent degradation. On the whole, this information remains consistent with a subdued macroeconomic outlook, yet fortunately, they do not seem to be yet at levels consistent with an outright global recession in 2023.

With the current report detailing a dismal future for the global economic stage, the continual rollout of Q4 2022 data reports and macro outlooks are the only sources of information that could redeem the current economic state. These could provide a more in-depth analysis of the health of the economy and whether the global economy could recover in the coming year.

### Today's Markets on Jan. 27th 03:21 GMT+8 💡

BTC +1.86% at $23,003.55; ETH +3.00% at $1,595.18.

Asia: Australia -0.30%; Japan -0.12%; Hong Kong +2.37%; China +0.76%; India -1.25%.

Europe: London +0.048%; Paris -0.25%; Frankfurt +0.34%.

US Spot Indices: Dow +0.14%; S&P +0.40%; Nasdaq +1.16%.

US Index Futures: Dow +0.06%; S&P +0.50%; Nasdaq +0.76%.

US Two-year Treasury is up by +0.029% at 4.166%.

US Ten-year Treasury is up by +0.005% at 3.467%.

UK Ten-year Gilt Bond had a +0.073% change and is at 3.317%.

[US Dollar](https://www.gate.io/trade/USD_USDT) Index +0.36% at 102.00.

FX in 24hrs: GBP: -0.15%; EUR: -0.0046%; JPY: +0.52%; CNY: +0.0087%.

Gold -0.97% at 1,927.10; Light Crude +1.66% at 81.48.

Market Catalysts This Week 🧠

Friday: BEA Issue PCE Price Index

### Catalysts next week 🗓
**Monday: **JPN Jobs/Unemployment Figures
Tuesday: S&P HPI Composite, CB Consumer Conference

**Crypto Daily Digest:** Crypto Market Continues To Accelerate Bullishly – Is The Bull Wave Here To Stay?

Across the past 24 hours, the cryptocurrency market has continued to accelerate, as if the bullish wave of the week prior has re-surged and is fuelling the market with vigor. Having regenerated value at a substantial rate, the market cap has reached $1.05T, having fallen by only 0.10% in the past 24 hours, likely as many begin to sell off their assets that have rapidly regained value. All of the top 20 have seen an uptick of between 1-13% across the past day as the bulls begin to reclaim the market. Polygon was privy to the most growth in the past 24 hours, having sharply risen by almost 13% and breaking through the $1 resistance zone. The continuation of the bullish momentum could be indicative that the cryptocurrency market’s correlation with the international economic stage is weakening, meaning that the market has the potential to further accelerate in the coming days and weeks.

This bullish sentiment has extended to the likes of Cardano, which bulls and analysts anticipate to near $1 again ahead of the deployment of their Djed stablecoin. Set to be released next week, the Djed stablecoin is set to foster expansion and novel applications in the Cardano ecosystem. COTI, a platform optimized for creating price-stable coins and the soon-to-be Djed issuer, has confirmed the scheduling of its release for next week and noted the substantial technological developments in its infrastructure.

On a more bearish note, Coinbase has officially been fined by the Dutch Central Bank. This comes in light of the cryptocurrency exchange giant failing to comply with local legislation between November 2020 and August 2022. The Dutch Central Bank reportedly took into account that the platform is one of the leading providers in the region and has a ‘significant number of customers on local soil’. This news further exacerbates the recent negative press surrounding the exchange, with a lawsuit regarding exploits and removal of user funds in America currently ongoing.

With the cryptocurrency market moving away from mirroring the stock market’s poor performance at the time and with the onset of the previous weeks’ bullish wave, it appears as if the cryptocurrency market may be entering a grace period. This grace period may entail a period of regeneration, however, it is critical to continue monitoring the space in the coming weeks to see if this wave can evolve into a fully fledged bull market as opposed to lulling the market into a false sense of security.

### Top 20 Coins Performance 🌐
BTC +1.86% at $23,003.55; ETH +3.00% at $1,595.18.
BNB +0.99% at $304.21; XRP +0.59% at $0.4083; DOGE +1.56% at $0.08581.
ADA +5.55% at $0.3769; MATIC +12.72% at $1.08; DOT +4.02% at $6.43.
TRX +1.27% at $0.06169; SHIB +2.84% at 0.00001157 LTC +0.22% at $88.02.
SOL +3.19% at $24.39; UNI +2.72% at $6.57; AVAX +4.07% at $18.08.
ATOM +2.18% at $13.09; LINK +3.77% at $7.01.

## Topic of the Day: [Bitcoin](https://www.gate.io/trade/BTC_USDT) Eyes Up $28K As Bullish Cross Forms

Across the past couple of weeks, [Bitcoin](https://www.gate.io/trade/BTC_USDT) has been privy to a bullish wave that has regenerated a substantial portion of the value and pulled it free from the throngs of the $13-19k region. Now above the $20k threshold, bulls are now targeting $28,000 as its next price ceiling, anticipating that if the current momentum can be maintained, it is viable that BTC can reach these highs. Having already broken free from a four-month bear cycle, [Bitcoin](https://www.gate.io/trade/BTC_USDT) is consistently pushing to new four-monthly highs and is now trading hands at an average of $23,000.

An analyst under the pseudonym, Thescalpingpro, has stated that the $23,500 to $24,500 zone remains a key area to watch, having stated that he believes that breaching this area will push [Bitcoin](https://www.gate.io/trade/BTC_USDT) to $28,100. With this acting as a heavy resistance area, this key zone could act as a price ceiling providing BTC cannot gain enough momentum to push beyond this zone. As of now, [Bitcoin](https://www.gate.io/trade/BTC_USDT) is poised to realize the golden cross formation pattern, which under this pattern, [Bitcoin](https://www.gate.io/trade/BTC_USDT)’s 50-day moving average (MA) approaches crossing above the 200-day MA.

[Bitcoin](https://www.gate.io/trade/BTC_USDT) (BTC) +1.86% at $23,003.55 - Neutral Outlook

**[Bitcoin](https://www.gate.io/trade/BTC_USDT) (BTC) Overlook:**

**Closest daily support zone:** 23,151-23,080

**Closest daily resistance zone:** 23,711.13

**Key level:** 23,711.13 (Monthly High Of January 2023)

**Daily Resistance Zones:**

23,083-23,180
22-915- 23,169
23,711.13-23,427.37

**Daily Support Zones:**

23,014.34-23,085.14
23,090-23,142
23,151-23,080

![](https://gimg2.gateimg.com/image/article/1674782903111.png)<center><font size=1>Data Courtesy of CoinMarketCap</font></center>

Having rallied over 11% across the past seven days, [Bitcoin](https://www.gate.io/trade/BTC_USDT) currently appears poised for a bullish breakout, with this already seeming to be on the cards. Due to the potential formation of a bullish golden cross formation, [Bitcoin](https://www.gate.io/trade/BTC_USDT) may continue to exceed its recent performance and accelerate through the $23,500 resistance zone and potentially break into the key zone of $23,500 and $24,500, according to analyst Thescalpingpro, which could propel it to bullish highs of $28,100 – one of the highest levels the asset has seen in over six months.

However, on a more bullish note, some analysts have also pointed out that [Bitcoin](https://www.gate.io/trade/BTC_USDT) may be facing the possibility of the first-ever death cross on the one-week chart, which results in a bearish sentiment. The current market conditions paired with this unsettling potential formation form comparable conditions to that that characterized the 2022 bear phase. However, on a more positive note, Thescalpingpro also notes that BTC’s current price movement mirrors the 2015 trading trajectory where BTC pumped by 214% before a death cross was about to be realized. This ultimately suggests that there is a bullish promise for BTC, but it is critical to be cautious.
## Further Reading
[Gate.io 2023: Focus Back on the Fundamentals](https://www.gate.io/blog_detail/2069/gateio-2023-focus-back-on-the-fundamentals "Gate.io 2023: Focus Back on the Fundamentals") | Our Founder, Lin Han, addresses Gate’s charity initiatives and goals for the new year.

[Watch Out for NFT Scams - How to Distinguish True and False NFT?](https://www.gate.io/blog_detail/2066/ "Watch Out for NFT Scams - How to Distinguish True and False NFT?") | There are 7 ways to tell the truth about NFTs to keep you away from the NFT scam

[ChatGPT AI impacts healthcare, Rising prices hit Americans, China's redistributive policies affect property developers](https://www.gate.io/blog_detail/2064/ "ChatGPT AI impacts healthcare, Rising prices hit Americans, China's redistributive policies affect property developers")|As we have seen in the past, global events and the crypto world are often intertwined.
## Notable headlines
🔹 ADA bulls anticipate $1 as the Djed stablecoin is scheduled for launch next week and has gained coveted listings.

🔹 Coinbase fined $3.6 million by the Dutch Central Bank for failing to comply with the Dutch regulators between November 2020 and August 2022.

🔹 Polygon surges by over 12% amid a spike in transactions. So far, Polygon has risen by 34% since the start of the year.

🔹 Proof-of-stake giant, Clover, has teamed up with Strike to bring [Bitcoin](https://www.gate.io/trade/BTC_USDT)’s Lightning Network to millions of merchants across the world through a 90-day trial period.

🔹FTX bankruoptcy lawyers pursue SBF’s family in the hunt for more assets to repay his obligations.

<div class="blog-details-info">
<div>Author:** Matthew Webster-Dowsing**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>