Bitcoin is showing some new energy. At the time of writing, the top cryptocurrency was trading at $20,883, leading The crypto market is rallying as optimistic investors enter the market.
This may come as a surprise, but with Consumer Price Index (CPI) data showing better economic trends, an upward break is more possible for BTC.
Analysts said that if BTC breaks through this important resistance, the beginning of the bull market is in hand. However, the rejection of this resistance will be done at the time of writing. Can Bitcoin overcome this in the next few days?
Bitcoin About to Hit $21K Mark
During the collapse of FTX, Bitcoin lost 27% of its value, and is also the most crypto in the market. With the coin almost breaking through the $21k price resistance, a large number of the short position in BTC has been liquidated.
This recent retest has fueled speculation that the next bull market is just days away. On Twitter, the community is absolutely convinced of the bull market hypothesis. Reg Capitalcrypto analyst on Twitter, recently noted if the current candle is the same size as the confirmed bull market return in 2019.
This current #BTC The Weekly Candle looks very similar to the April 2019 Weekly Candle which confirmed the new Bull Market$BTC #Crypto #Bitcoin pic.twitter.com/5tX7U6pFRN
— Rekt Capital (@rektcapital) January 14, 2023
Although past performance does not necessarily predict future results, it is very insightful into BTC price movements in the coming days or weeks. Along with improve macroeconomic trends, Bitcoin has a lot of headroom to push up.
$BTC trying Resistance Key (21.3k) 👀🧐
After 21.3k Resistance gets Clear, BullRun 2023 will Officially Begin.#Crypto #Bitcoin #BTC pic.twitter.com/Sayv2zVHu6
– Captain Faibik (@CryptoFaibik) January 14, 2023
Resistance Ahead
Moving forward, it seems that the bullishness of the coin has met strong resistance at the level of $21,300. This resistance has been further reinforced by the fear of a global recession.
According to World Bank, inflation in developing and advanced economies remains high, leading the world to the brink of a global recession. With that in mind, investors and traders should be watching global macro trends as these will also affect their portfolios.
BTC total market cap at $397 billion on the weekend chart | Chart: TradingView.com
But with optimistic market from the soft landing of the economy- especially after the report of the Consumer Price Index is positive – we can expect Bitcoin to break through for a while and then enter the correction phase in the next few days or weeks.
Investors and traders should also watch the charts for signs of a correction. But with coins overbought during the early stages of the market rally, buyer fatigue may not be far from happening.
Investors and traders may consider selling Bitcoin at the current market price or higher to make a profit.
-Image featured by Smithsonian Magazine