13 C
Thursday, September 21, 2023
HomeBitcoin Rally To $21K Prompts Analysts To Ask Where BTC Price Will...

Bitcoin Rally To $21K Prompts Analysts To Ask Where BTC Price Will Go Next


Related stories

MBS To Fox: Saudi Arabia Will Get Nuclear Arms If Iran Does

Crown Prince Mohammed bin Salman (MbS) said in an exclusive Fox News interview published Wednesday that Saudi Arabia will obtain a nuclear weapon if its number one regional rival does so first. "If they get one, we have to get one," MbS told Fox's 'Spe...

Religious Roundtable | PBD Podcast | Ep. 306

In this episode of the PBD Podcast Patrick Bet-David will host a religious roundtable to discuss different perspectives of religion. […] The post Religious Roundtable | PBD Podcast | Ep. 306 first appeared on Valuetainment.

McCarthy Fails For 2nd Time To Advance Bill Funding Defense Department As Ukraine Sows Division

McCarthy Fails For 2nd Time To Advance Bill Funding Defense Department As Ukraine Sows Division Update(12:20ET): With Zelensky in Capitol Hill, and with Ukraine aid hanging in the balance, Kevin McCarthy has failed for a second time to adv...

The Permanent Strikes Continue: GM Joins Ford, Stellantis With Mass Layoffs As Result Of UAW Action

The Permanent Strikes Continue: GM Joins Ford, Stellantis With Mass Layoffs As Result Of UAW Action As the ill effects of the ongoing UAW strike continue, we will continue to document them.  First, we wrote about Stellantis looking to clo...

Nagorno-Karabakh Announces Readiness To Surrender Following Azerbaijan Offensive

The de facto Armenian administration of Nagorno-Karabakh declared its readiness to surrender to Azerbaijan, avoiding further bloodshed following the start of the latter’s offensive a day earlier.  The population of the region has been under Azerbaijani...
Bitcoin Rally To $21K Prompts Analysts To Ask Where BTC Price Will Go Next

After Bitcoin BTC  hit a yearly high of $21,095 on Jan. 13, reversing the entire FTX crash...

... where is it headed next? As CoinTelegraph writes, Bitcoin is currently witnessing an uptick in bullish momentum after the positively perceived CPI report was followed by a strong rally across the crypto market.

The recent rally in Bitcoin is creating increased volume levels and higher social engagement on whether the price is in a breakout of fakeout mode.

Is the Bitcoin bear market over?

While the market is still technically in a bear market compared to last week, investor sentiment is improving. According to the Fear and Greed Index, a crypto-specific metric that measures sentiment using five weighted sources, investors’ feelings about the market hit a monthly high.

Bitcoin price is now above the psychologically important $21,000 level and many analysts and traders are issuing their thoughts on where BTC price could head next.

Let’s explore a few of these perspectives.

Bitcoin trading volumes remain a concern

Bitcoin just barely recovered from its pre-FTX levels, rising above $21,000 on Jan. 13 for the first time since Nov. 8, 2022. Despite the strength of the recent rally, some analysts believe BTC price needs to remain above the $21,000 support before the current bullish trend can be sustained.

According to Glassnode analysis:

“A renewed bullish trend that started on January 1st drove bitcoin to the $18.6 - $18.9k level, yet a cross over to $19k is necessary to claim a new trading channel around $19-$21k. Resistance is expected around these levels as bitcoin faces a mid-term downward trend. If the price fails to break over the trend line, we expect a retrace toward the $16-$17k area.”

The lack of trading volume of around $18,000 shows the weakness in the current on-chain and centralized exchange (CEX) activity. The largest volumes and overall activity seem to surround the $16,000 level, suggesting that is a more solid floor than the current price range. With less volume surrounding levels higher than $21,000, Bitcoin’s rally could be capped at $21,095.

Is it just a bear market rally?

Bitcoin is still facing headwinds including massive exchange layoffs in a tightening macro economy, Gemini and Genesis legal issues and the potential establishment of a U.S. House crypto-focused subcommittee.

In addition, Bitcoin’s relative strength index (RSI) is currently showing BTC as overbought. According to RSI analysis, a sharp downtrend may form as the price corrects.

The macro markets are also at major resistance levels. The United States Dollar index (DXY) is at key support which means risk assets like Bitcoin may start to see a sell-off if the index recovers. Bitcoin remains correlated to equities and the SPX mini futures index is also showing signs of a pullback.

TraderSZ explains below:

With Bitcoin investors taking profits as suggested by TraderSZ, it may be tough for BTC to reach higher levels.

Historical analysis points to a new Bitcoin bottom

Bitcoin is currently below its 200-week moving average and according to Rekt Capital, Bitcoin price may have already hit its macro bottom according to historical data. Historically the “Death Cross” level shows a $23,500 bottom.

While traders and technical analysts are not known for accurately predicting how long a bull or bear market might last, independent market analyst HornHairs cited historical data from 2015 to estimate how long it will take for Bitcoin to hit a new all-time high.

The bull market from 2015 to 2017 lasted for 1064 days, matching with the 2018 to 2021 bull market which lasted the same number of days. If traders match the bear market that followed between 2017 to 2018 and 2021 to the current market, it would take 1,001 days until Bitcoin reaches a new all-time high.

Despite the current conditions and the strength of the current price breakout, Bitcoin has proven many technical analysts wrong in the past. Risk-averse traders might consider keeping an eye out for increased trading volume at higher prices as an indicator of whether Bitcoin is finally back in a bull market.

Tyler Durden Sat, 01/14/2023 - 11:33


- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories


Please enter your comment!
Please enter your name here