Home CryptocurrencyAltcoin Bitcoin Tracks $21.4K Zone As Analyst Predicts BTC Price To Chase Gold

Bitcoin Tracks $21.4K Zone As Analyst Predicts BTC Price To Chase Gold

by SuperiorInvest

Bitcoin (BTC) rose to new multi-month highs on January 20 as analysis predicted a new trading range above $18,000.

BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView

Bitcoin price range ‘well defined’

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD testing but maintaining support at $21,000.

The pair rallied at the Wall Street open, in line with U.S. stocks, as the third trading week of an explosive January drew to a close.

Despite concerns about the fundamental strength of the rally, Bitcoin continued to avoid major corrections, with an analysis of the exchange’s order book revealing $23,000 as the next major resistance zone to break.

“BTC’s lack of liquidity below $18,000 and above $23,000 is currently seen as a lack of sentiment for these levels,” a monitoring source on the Material Indicators chain he wrote in the comments section of the Binance order book setup.

“Nothing changes sentiment like price movement through support or resistance, but for now the trading range is well defined.”

BTC/USD order book data (Binance). Source: Material Indicators/Twitter

The accompanying chart also revealed significant supply support just above the psychologically significant $20,000 mark.

In terms of short-term targets, popular trader and analyst Crypto Ed was hoping for a path to $21,500 before a reversal with a downside target of $19,800.

“I still believe we will get there, and we may be on our way there,” said Va YouTube update on that day.

The area around $21,400 was equally important to fellow trader CJ who he said Twitter followers that this would be a good place to “mark longs”.

Analyst: Bitcoin should ‘close the gap’ with gold

Others focused on the continued impressive moves in safe-haven gold, which hit a new nine-month high on January 19.

Related: Bitcoin May Break $30,000 Before New Bear Market Low – Forecast

IN Twitter debateAnalysts have been eyeing a potential ongoing catch-up game between gold and bitcoin, which researcher and data analyst James V. Straten claimed was a “mirror image” of each other in 2022.

“My BTC bet is closing that gap soon,” he said he said in discussing the market implications of Federal Reserve policy.

Straten added that BTC/USD has already “traced the entire collapse of FTX and the coming end of the story for DCG”, referring to persistent problems for crypto-financial conglomerate, Digital Currency Group.

BTC/USD One Day Line Chart vs. XAU/USD. Source: TradingView

Like Cointelegraph reportedexpectations earlier called for bitcoin to be copied after gold took the early lead in its recovery from the lows.

The views, thoughts and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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