The Rational Root is a Dutch on-chain analyst who created a furore on Twitter last year. In a short time, he managed to gather a following of over 135,000 people with his strong analyses. Now his latest post shows that he is convinced that bitcoin will not fall towards the November 2022 lows any time soon.
Got enough bitcoin?
In his latest publication, Root asks his followers whether they have bought enough bitcoin in the “value zone”. Last period, bitcoin fell into a so-called value zone, according to the analyst, by which he means that bitcoin was very cheap at the time.
Did you stack enough in the value zone? #Bitcoin https://t.co/tP2cDlwy7Z pic.twitter.com/xH9p7q9HzC
— Root 🥕 (@therationalroot) February 2, 2023
Meanwhile, bitcoin’s rise of over 40 per cent in 2023 has pushed it out of that zone and there is no turning back, according to Root. Based on the analyst’s words, it seems like he expects bitcoin to mostly continue its upward trajectory from here and certainly not fall back to the 2022 bear market lows.
Where this rally will end for bitcoin is hard to say. We often see the price rise during the year leading up to the next halving, but the exact rises are often hard to predict in the case of bitcoin.
Bitcoin and S&P 500 remain above trend line
On Wednesday, the US Federal Reserve raised interest rates by another 0.25 per cent to the zone of 4.50 to 4.75 per cent. According to Root, this was an important measuring point for both bitcoin and the US S&P 500 stock index.
The Fed raised interest rates by expected 25bps. #Bitcoin and #SPX500 remain above trendline! pic.twitter.com/8gNamxgG9C
— Root 🥕 (@therationalroot) February 1, 2023
Both finally managed to stay above the trend line shown in his tweet. That trend line acted as resistance for both assets for a long time, but has now been broken through, possibly marking the start of a new bull market.
At the moment, it seems too early to draw conclusions. In the past, we often saw rallies like this during bear markets. For instance, in the early years of this millennium during the bursting of the DOTCOM bubble. In this respect, we are still waiting for confirmation, but the omens are more than good.
