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Bitcoin poised for another attack on $24K as trader predicts ‘bearish February’

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Bitcoin (BTC) rose above $23,000 into the Jan. 31 Wall Road open as markets braced for a contemporary macroeconomic reckoning.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

Dealer: $25,000 “greatest case” for BTC/USD

Knowledge from Cointelegraph Markets Pro and TradingView confirmed BTC/USD gaining round 1% in a single hourly candle earlier than the beginning of buying and selling, overcoming resistance in place in a single day.

With hours to go till the month-to-month shut, the pair remained round $800 wanting its weekend highs, which at $23,950 marked Bitcoin’s strongest efficiency since mid-2022.

Inspecting the established order, nevertheless, merchants have been unconvinced that the biggest cryptocurrency would produce additional beneficial properties in February.

January, had produced upside of over 40%, making it Bitcoin’s greatest first month of the yr since 2013.

“One other excessive as much as $25,000 is the very best case for me on Bitcoin,” widespread dealer Crypto Tony told Twitter followers on the day.

He added that he anticipated a “bearish February” with value targets of $21,400 and even $19,000.

BTC/USD annotated chart. Supply: Crypto Tony/ Twitter

Crypto Tony additionally referenced the U.S. greenback, which spiked to two-week highs on the day to proceed a four-day uptrend. The U.S. greenback index (DXY) is historically inversely correlated with crypto markets.

On that word, fellow dealer and analyst Scott Melker, often known as “The Wolf of All Streets,” centered on the weekly candle shut of the S&P 500 after the index closed above its 50-week transferring common for the primary time since April final yr.

“SPY closed a weekly candle above the 50 MA for the primary time since April. At the moment testing it as assist, with FOMC coming tomorrow and a unstable week doubtless. Watch the shut on Friday,” he tweeted on the day.

U.S. greenback index (DXY) 1-day candle chart. Supply: TradingView

Bitcoin evokes run-up to all-time highs

Formal evaluation from on-chain analytics agency Glassnode nonetheless steered away from predictions for subsequent month.

Associated: Best January since 2013? 5 things to know in Bitcoin this week

Within the newest version of its weekly publication, “The Week On-Chain,” analysts centered on the importance of January because the month that Bitcoin got here again to life.

“As the top of January approaches, Bitcoin markets have seen the strongest month-to-month value efficiency since Oct-2021, fueled by each historic spot demand, and a sequence of quick squeezes,” it summarized.

“This rally has introduced a big portion of the market again into revenue, and resulted in futures markets buying and selling at a wholesome contango. We additionally word that preliminary impulse of change outflows, within the aftermath of FTX have calmed to impartial, and are actually balanced by newly motivated inflows.”

As Cointelegraph reported earlier, varied sources consider that Bitcoin’s rally is already coming to an finish.

The views, ideas and opinions expressed listed here are the authors’ alone and don’t essentially replicate or characterize the views and opinions of Cointelegraph.