The price of bitcoin (BTC) is up nearly 40% since the start of the year and is very close to making this month its best January since 2013 when it rose 51%. But what could this monthly close look like for the mother cryptocurrency?
Several analysts agree that if BTC manages to hold above the $23,000 mark, it could start a new rally in its price that would take it to a six-month high, with the possibility of hovering around $24,000 by the close of this January 2023.
How will BTC move in the coming days?
Analyst Rekt Capital stated on its Twitter account that the $23,000 price “continues to act as resistance” for bitcoin. “Ideally, Bitcoin should ideally close above $23,400 per month to ensure a higher probability of a breakout.”
To ensure a higher chance of breakout, #BTC should ideally Monthly Close above the blue ~$23400 resistance
Otherwise, $BTC could set itself up for a dip inside this ~$20000-$23400 range (blue-blue) to consolidate here for a few weeks#Crypto #Bitcoin pic.twitter.com/W4IZjGNYUz
— Rekt Capital (@rektcapital) January 27, 2023
Otherwise, the cryptocurrency could set up for a drop into the $20,000-$23,400 range to consolidate at that level for a few weeks.
Economist Alex Krüger wrote on Twitter that “bearish and risk-averse people” should wait to buy BTC on its next drop from $32,000 to $28,000, sometime in 2023.
The bearish and risk averse will be able to safely buy the bitcoin dip from 32k to 28k later in 2023.
— Alex Krüger (@krugermacro) January 25, 2023
“All kidding aside, breaching $30,000 and then pulling back would be normal market dynamics. Markets tend to overshoot key levels, trigger stops, attract breakouts and then take them out. And $30,000-$35,000 looks very doable for BTC,” he mentioned.
For his part, fellow analyst Kaleo shared a chart with the message, “Once again I remind you that bitcoin is going straight to $30,000.”
I once again am here to remind you that Bitcoin heads straight to $30K from here. pic.twitter.com/VnDlbfsoVN
— K A L E O (@CryptoKaleo) January 25, 2023
U.S. companies betting on bitcoin
According to the head of research at the firm Matrixport, Markus Thielen, 85% of recent bitcoin purchases were made by institutional investors in the United States (US).
This data suggests that companies are not “giving up on cryptocurrencies,” This indicates that we could be entering a new “bullish crypto market,” Thielen said in an interview.
If Matrixport’s figures are true, these companies would already be in profit, according to data from analytics firm CryptoQuant.
The firm claimed that bitcoin’s supply is at a loss with the seven-day moving average standing at 32%, a nine-month low.
This is the lowest level since April 2022, when the bitcoin price stood at $40,000, following its decline from $69,000.
The supply of bitcoins at a loss is a metric that is measured by the number of coins at a loss. This data compares the price at which the coin in question last moved and the spot price. If the price is lower than the current price, then the coin is at a loss.
Meanwhile, parallel data from IntoTheBlock reveals that 61% of coin holders are in profit. Only 36% are at a loss and 3% are at a break-even point.
Greed returns to the market
The Fear and Greed Index, the metric that shows overall market sentiment towards bitcoin, entered the “greed” zone for the first time since March 30, 2022, as a result of the BTC price increase during the first month of the year and the general revival of the entire market.
The index, which functions as an indicator of investors’ momentary sentiments towards the digital asset, was stuck in “Fear” or “Extreme Fear” territory for several months, due to the prolonged bear market and the numerous bankruptcies and scandals in the industry, such as the collapse of FTX.
However, the BTC rally seems to have turned the tide. And today, January 27, the metric marked “Greed.” The last time this index reached that level was about ten months ago.
At the time of writing (16:45 UTC), bitcoin was trading at $23,120, up 0.65% in the last 24 hours.
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