Bitcoin (BTC) rose to a new multi-month high on January 20 as analysis predicted some fresh trading above $18,000.
Bitcoin price range “well defined”
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD testing but maintaining support at $21,000.
The pair rose higher at the opening of Wall Street, in line with US equities as the third trading week of an explosive January came to an end.
Despite concerns about the underlying strength of the rally, Bitcoin continues to avoid a significant correction, with an analysis of the exchange’s order book revealing $23,000 as the next big resistance zone to crack.
“I see the lack of BTC liquidity below $18k and above $23k as a lack of sentiment for these levels at this time,” on-chain resource Material Indicator. write in the comments section about the Binance order book setup.
“Nothing changes sentiment like price moving through support or resistance, but for now, the trading range is well defined.”
The accompanying chart also shows significant bid support above the psychologically significant $20,000 mark.
In terms of short-term targets, popular trader and analyst Crypto Ed expects a trip to $21,500 before a turnaround with a downward target of $19,800.
“I still believe we’re going to get there, and maybe we’re already there,” he said in a YouTube update later that day.
The area around $21,400 was important to fellow traders CJ, who toward Twitter followers believe this will be the perfect place for “tag longs.”
Analyst: Bitcoin must “close the gap” with gold
Zoom out, others focus on the impressive movement continued by safe haven gold, which has reached a new nine-month high on January 19.
Related: Bitcoin could pass $30K before setting new bear market – forecast
At Twitter debateAnalysts eyely potential continues the game of catch-up between gold and Bitcoin, which researcher and data analyst James V. Straten argues has a “mirror image” of each other in 2022.
“BTC is my bet to close the gap quickly,” he said said when discussing the market implications of Federal Reserve policy.
Straten added that BTC/USD has “traced the entire collapse of FTX and is approaching the end of the narrative for DCG,” indicating ongoing problems for the crypto financial conglomerate, Digital Currency Group.
As Cointelegraph reported, expectations were previously asking for a copycat move in Bitcoin after gold took an early lead in recovering from lows.
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