Monday, February 6, 2023

Bitcoin eyes $21.4K zone as analyst predicts BTC price will chase gold

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Bitcoin (BTC) rose towards new multi-month highs on Jan. 20 as evaluation predicted a brand new buying and selling vary above $18,000.

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

Bitcoin value vary “properly outlined”

Knowledge from Cointelegraph Markets Pro and TradingView confirmed BTC/USD testing however preserving assist at $21,000.

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The pair edged increased on the Wall Road open, consistent with United States equities because the third buying and selling week of an explosive January drew to an finish.

Regardless of misgivings over the rally’s elementary energy, Bitcoin continued to keep away from vital corrections, with alternate order e-book evaluation revealing $23,000 as the subsequent massive resistance zone to crack.

“I view the shortage of BTC liquidity beneath $18k and above $23k as an absence of sentiment for these ranges presently,” on-chain monitoring useful resource Materials Indicators wrote in a part of commentary concerning the Binance order e-book setup.

“Nothing modifications sentiment like value transferring by means of assist or resistance, however for now, the buying and selling vary is properly outlined.”

BTC/USD order e-book information (Binance). Supply: Materials Indicators/ Twitter

An accompanying chart additionally revealed vital bid assist in place at simply above the psychologically vital $20,000 mark.

When it comes to short-term targets, widespread dealer and analyst Crypto Ed hoped for a visit to $21,500 earlier than a turnaround with a draw back goal of $19,800.

“I nonetheless consider that we are going to get there, and perhaps we’re already on our manner over there,” he mentioned in a YouTube update on the day.

The realm round $21,400 was equally vital for fellow dealer CJ, who told Twitter followers that this could be an appropriate place to “tag longs.”

Analyst: Bitcoin ought to “shut hole” with gold

Zooming out, others centered on continued spectacular strikes by secure haven gold, which had hit a brand new nine-month excessive on Jan. 19.

Associated: Bitcoin can pass $30K before setting new bear market low — forecast

In a Twitter debate, analysts eyed a possible continued sport of catch-up between gold and Bitcoin, which researcher and information analyst James V. Straten argued had been a “mirror picture” of one another in 2022.

“My guess BTC closes that hole quickly,” he said whereas discussing the market implications of Federal Reserve coverage.

Straten added that BTC/USD had already “retraced the whole FTX collapse and approaching the tip of the narrative for DCG,” referring to ongoing problems for crypto finance conglomerate, Digital Foreign money Group.

BTC/USD vs. XAU/USD 1-day line chart. Supply: TradingView

As Cointelegraph reported, expectations beforehand referred to as for a copycat transfer on Bitcoin after gold took an early lead in recovering from lows.

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