Bitcoin (BTC) traded sideways on January 24, Wall Street opened with analysts at a loss over where the price will go next.
BTC price holds below the key resistance
Data from Cointelegraph Markets Pro and TradingView tracked a day of consolidation for BTC/USD, which continued to reach $23,000.
The pair did not react to the start of trading, including technical problems on the New York Stock Exchange, while the macroeconomic data of the United States also failed to change the status quo.
Bitcoin thus has no direction after establishing a narrower trading range on January 20.
“Bitcoin could not break through the important resistance at $23.1K,” Cointelegraph contributor Michaël van de Poppe summarized.
“If we continue to build LH we will try and sweep around $22.3K before moving on. Gives us some serious buying opportunities.
A later Twitter survey shows just how far the average market participant has fallen in terms of where the market may be headed next. At the time of writing, 47.8% of around 4,000 responses agreed that a correction should take place in Bitcoin, with the remaining 52.2% betting on a trip to $25,000.
“Choppy price action without a clear pattern or direction,” trader Daan along together with a chart with targets.
“Intra-day I mainly watch this white area as a high volume node along with opening Daily and Weekly. Expansion above 23.1 and below 22.6K. Tasting until then.”
Discuss the possibility of continuing to rise, fellow trader Gaah meanwhile highlighted $24,000 as an important level to watch.
Previously, Cointelegraph has reported on the significance of the surrounding area, this is the site for a short liquidation with the 200-week moving average of Bitcoin above.
“The first positive sign for the reversal is $20.8k being the floor. The second positive sign is $24k being the next floor,” part of Gaah’s analysis reads.
Bitcoin sends hodlers into the black
Zooming out, it’s the chain analytics company Glassnode that is cautiously optimistic about the significance of the BTC price breakout.
Related: BTC metrics out of capitulation – 5 things to know in Bitcoin this week
When reaching the current level, note that BTC/USD has crossed three major trend lines in one, this has not happened since March 2020.
“The recent surge in Bitcoin price action has led to an early breakout above all three cost bases for the first time since the bear market of 2018/19 and the Covid crisis of March 2020,” the accompanying commentary said. read.
“Duration that remains above this key psychological level will be considered constructive.”
The chart shows the cost base – the aggregate price paid – for both short-term and long-term Bitcoin holders, along with the realized price which shows the aggregate price at which the final supply moved.
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