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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.
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 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:
$BTC – huge resistance here…dxy at key support…ES looking like it could pullback abit, eth at macro mid range…been up only all week so could get some profit taking/pullback….arrow would be my trigger IF it follows plan pic.twitter.com/6JziAmBywH
— TraderSZ (@trader1sz) January 12, 2023
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.
Several months later and #BTC has dropped into the Macro Bottoming Area as dictated by historical $BTC Death Cross price tendencies
According to these principles, the general Bottoming Out area begins from $23500 (green)#Crypto #Bitcoin https://t.co/85DjLHoZnD pic.twitter.com/iTbCV1CxG3
— Rekt Capital (@rektcapital) January 13, 2023