Early 2023 Bitcoin Price Rally – DOJ Ends the Party With the Bitzlato Case. What’s Next for Bitcoin Price?

The timing of the announcement is all the worse as 4 on-chain indicators suggest a potential start of a bullish cycle ahead.

This past weekend had the price of Bitcoin finally breaking $20K for the first time since the FTX fiasco of early November 2022. Even better, the price of Bitcoin had even reached $21.5K, exceeding the last high before the FTX fiasco.

The beginning of 2023 had given us a bullish rally that was quite good for morale regarding the price of Bitcoin:

Bitcoin was on a nice run of daily green candles.

As has often been the case over the past year, this is when a black swan occurred. A small black swan for the moment, as the consequences have not been that violent so far, but still.

The DOJ chose this January 18, 2023, to announce a big press conference about cryptocurrencies. The market started to get scared and the price of Bitcoin dropped sharply hitting a low just above $20K.

So what was this announcement from the DOJ?