After Bitcoin (BTC) strike a yearly high of $19,501 on Jan. 13, where is it headed next?
Bitcoin is presently witnessing an uptick in bullish momentum after the favorably viewed Consumer Price Index (CPI) report was followed by a strong rally across the crypto market.
The recent rally in Bitcoin is developing increased volume levels and higher social engagement on whether the price is in a breakout of fakeout mode.
Is the Bitcoin bearish market over?While the marketplace is still technically in a bear market compared to last week, financier belief is improving. According to the Fear and Greed Index, a crypto-specific metric that measures sentiment utilizing five weighted sources, investors’sensations about the market struck a month-to-month high. Bitcoin Fear and Greed index. Source: alternative.me Bitcoin price is now approaching the psychologically important$20,000 level and many experts and traders are issuing their thoughts on where BTC rate might head next. Let’s check out a few of these point of views. Bitcoin trading volumes stay a concern Bitcoin rate has yet to recover from its pre-FTX levels, but reached
above $19,501 on Jan. 13 for the first time considering that
Nov. 8, 2022. In spite of the strength of the recent
rally, some experts think BTC rate requires to reach$21,000 before the present bullish trend can be sustained.According to Glassnode analysis, “A restored bullish trend that started on January 1st drove bitcoin to the$18.6-$18.9 k level, yet a cross over to $19k is essential to claim a new trading channel around $19-$21k.
Resistance is anticipated around these
levels as bitcoin faces a mid-term down trend. If the price stops working to break over the trend line, we anticipate a retrace towards the$ 16-$17k area. ” BTC rate compared to volume. Source: Glassnode The absence of trading volume around$18,000 reveals the weak point in the present on-chain and centralized exchange(CEX)activity. The largest volumes and general activity appear to surround the$16,000 level, recommending that is a more
solid floor than the current cost variety. With less volume surrounding levels greater than$20,000, Bitcoin’s rally could be topped at$20,000. Is it just a bearishness rally?Bitcoin is still dealing with headwinds consisting of huge exchange layoffs in a tightening up macro economy, Gemini and Genesis legal concerns and the potential facility of an US House crypto-focused subcommittee. In addition, Bitcoin’s relative strength index(RSI)is presently revealing BTC as overbought. According to RSI analysis, a sharp sag might form as the rate corrects. Bitcoin RSI. Source: TradingView The macro markets are likewise at significant resistance levels. The
United States Dollar index (DXY)is at essential assistance which means risk assets like Bitcoin may start to see a sell-off if the index recovers. Bitcoin stays correlated to equities and the SPX mini futures index is likewise showing signs of a pullback. TraderSZ explains listed below:$BTC-big resistance here … dxy at essential support … ES looking like it might pullback abit, eth at macro mid range … been up just all week so might get some profit taking/pullback … arrow would be my trigger IF it follows strategy pic.twitter.com/6JziAmBywH!.?.!— TraderSZ(@trader1sz)January12
, 2023 With Bitcoin financiers taking profits as suggested by TraderSZ, it might be difficult for BTC to reach greater
levels.Historical analysis indicate a brand-new Bitcoin bottom Bitcoin is presently below its 200-week moving typical and according to independent market expert Rekt Capital, Bitcoin price might have already hit its macro bottom according to historic data. Historically the “Death Cross”level reveals a$23,500 bottom.Several months later on and #BTC has actually dropped into the Macro Bottoming Area as determined by historic$ BTC Death Cross cost propensities According to these principles, the basic
Bottoming Out area starts from $23500(green) #Crypto #Bitcoin https://t.co/85DjLHoZnD pic.twitter.com/iTbCV1CxG3!.?.!— Rekt Capital(@rektcapital)January 13, 2023 While traders and technical analysis are not known for precisely predicting how long a bull or bearishness may last, independent market analyst HornHairs cited historic information from 2015 to estimate how long it will consider Bitcoin to hit a new all-time high. The bull market from 2015 to 2017 lasted for 1064 days, matching with the 2018 to 2021 booming market which lasted the same number of days. If traders match the bearish market that followed in between 2017 to 2018 and 2021 to the current market, it would take 1,001 days until Bitcoin reaches a brand-new all-time high.$ BTC #Bitcoin 2015-2017 booming market: 1064 days 2017-2018 bearish market: 364 days 2018-2021 booming market: 1064 days 2021 -* present * market low: 364 days Days left up until the top if we just carbon copy the cycle timeframe again: 1001 days pic.twitter.com/KoNZxJRuy5!.?.!— HornHairs(@CryptoHornHairs)January 12, 2023 Despite the present conditions and the strength of the present rate breakout, Bitcoin has shown many technical experts incorrect in the past. Risk-averse traders might consider keeping an eye out for increased trading volume at greater rates as an indicator of whether Bitcoin is finally back in a booming market. The views, ideas and viewpoints expressed here are the authors’alone and do not always reflect or represent the views and viewpoints of Pandoraland.
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