If Bitcoin's price gets back to normal within the next two weeks, the extended crypto bear market - commonly known as crypto winter - may finish as swiftly as it began.
Bitcoin (BTC), the largest cryptocurrency by market capitalization, surpassed $23,000 during early Wednesday afternoon trade and was trading at approximately $23,350, as the crypto slowly inches to the $24K mark.
In two days, BTC has increased by more than 12 percent, bringing the price of the crypto to its highest level since its June 13 implosion that worried many investors.
According to Edward Moya, senior market analyst at brokerage firm Oanda, Wall Street is in a risk-on mentality, which is excellent news for cryptocurrencies.
Moya noted that the crypto market is beginning to appear "attractive" now that the economy is improving and Fed tightening predictions have diminished.
Fans of cryptocurrencies are cheering at the sight of green throughout the market on July 19, as months of "down only" price action have finally ended with the market's first significant relief bounce in at least a month.
TradingView data indicates that a significant portion of the increased enthusiasm is the consequence of BTC surpassing resistance at $23,000 to reach a daily high of $23,447, its first significant move above the 200-week moving average.
Numerous crypto market analysts have been anticipating one last significant decline, with some predicting a Bitcoin bottom between $10,000 and $14,000.
While this is still a possibility, analysts believe bitcoin's bottom may have been reached if more institutions invest in the next weeks, as market positioning has become severe.
The Crypto Greed & Dread Index, which measures investor attitude toward cryptocurrencies, shifted from "extreme fear" to "fear" and increased 10 points to 30, the highest level since April.
The significance of the current price level was further examined by technical analyst Crypto Patel, who published a chart depicting the different paths BTC could take in the event of a sharp directional move from the current supply zone located between $21,700 and $22,800.
In his analysis, Marcus Sotiriou, a market analyst at digital asset trader GlobalBlock, said investors are currently optimistic that the recent market volatility will soon subside.
He stated that investors are becoming more bullish about the cryptocurrency market as a result of the recent rebound in stock markets across the United States, Europe, and Asia.
Since the beginning of the year, cryptocurrencies, in particular Bitcoin, have been strongly correlated with the financial markets.