BITO: Playing Bitcoin's Big 2023 Rally

Jan. 30, 2023 7:26 PM ETProShares Bitcoin Strategy ETF (BITO)BTC-USD

Summary

  • Crypto felt left for dead toward the end of 2022 amid weak price action and the FTX saga.
  • Buyers have stepped in the near year, with both spot Bitcoin and BITO rallying above key moving averages.
  • I see more upside likely in crypto, and I highlight key levels for profit-taking.
Abstract Bitcoin Cryptocurrency concept

Olemedia

Bitcoin (BTC-USD) is back. Amid easing interest rates and a return to favor in long-duration growth assets, cryptocurrencies have rallied sharply to kick off 2023. What I find fitting is that so many strategists were calling for sub-$15k Bitcoin around the FTX (FTT-USD) debacle just a couple of months ago. Moreover, with a continued hawkish Federal Reserve, hellbent on hiking interest rates toward 5%, it was a clear consensus that coins and tokens could not rally with vigor under such a trouble, higher-rate regime.

Toss all that out the window now. I see upside risks to crypto, and Bitcoin specifically. As it’s hard to gauge the true fundamental value of one token, I prefer to assess price action and the charts to see how investors should play Bitcoin. One

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