Bitcoin (BTC) traded sideways at the Wall Street open on Jan. 24 with analysts at a loss on where the price would go next.
BTC Price Holds Below Key Resistance
Data from Cointelegraph Markets Pro and TradingView followed a day of consolidation for the BTC/USD pair, which continued to hover around $23,000.
The pair barely reacted to the start of trading, including technical problems on the New York Stock Exchange, while US macro data failed to change the status quo either.
Thus, Bitcoin lacked direction after establishing a narrower trading range on January 20.
“Bitcoin failed to break crucial resistance at $23,100”, summarized Michaël van de Poppe, a Cointelegraph contributor.
“If we continue to LH, we will probably test and go to around $22,300 before continuing. It gives some serious buying opportunities.”
A post poll on Twitter it showed the extent to which the average market participant was undecided about the direction the market might take. At the time of writing these lines, 47.8% of some 4,000 responses agreed that Bitcoin should undergo a correction, while the remaining 52.2% bet on a trip to $25,000.
“Price action is irregular, with no clear pattern or direction,” keep going the Daan trader next to a chart with targets.
“Intraday, I mainly see that these white areas are the high volume nodes along with the daily and weekly open. Expansion above 23,100 and below 22,600. Cut until then.”
Speaking Regarding the probability of a bullish continuation, Gaah highlighted $24,000 as an important level to watch.
Previously, Cointelegraph had reported on the importance of the surrounding area, this being a place for short liquidations with Bitcoin’s 200-week moving average above.
“The first positive sign for the reversal is $20,800 becoming the bottom. The second positive sign is $24,000 becoming the next bottom,” part of Gaah’s analysis read.
Bitcoin makes hodlers bullish
On-chain analytics firm Glassnode was cautiously optimistic about the significance of the BTC price breakout.
Upon reaching current levels, He noted, the BTC/USD pair had broken through three key trend lines at once, something that hadn’t happened since March 2020.
“The recent surge in Bitcoin price action has resulted in an initial break above three cost bases for the first time since the 2018/19 bear market and the March 2020 Covid crisis,” they were saying the comments that accompanied the article.
“A sustained duration above these key psychological levels would be considered constructive.”
The chart displayed the cost bases (the aggregate price paid) for short- and long-term Bitcoin holders, along with the realized price that reflects the aggregate price the bid last moved to.
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