Bitcoin price rally over $21K prompts analysts to explore where BTC price might go next

January 17, 2023

After smashing through the $20,000 price level on January 13, many traders are wondering where Bitcoin will go next.

As of this writing on January 16, BTC/USD is teetering just above the $20,000 level, prompting a heated debate on social media as to whether this is a bear market rally, a bull trap or the start of a new bull run.

A Quick Analysis Of The Evidence:

1) While the market is still technically in a bear market compared to last week, investor sentiment is improving.

According to the Fear & Greed Index, a crypto-specific metric that measures sentiment using five weighted sources, investors' feelings about the market hit a monthly high.

2) Bitcoin trading volumes remain a concern.

Despite the strength of the recent rally, some analysts believe BTC price needs to remain above the $21,000 support before the current bullish trend can be sustained.

The lack of trading volume of around $18,000 shows the weakness in the current on-chain and centralized exchange activity.

3) Bitcoin may have already bottomed.

According to Rekt Capital, Bitcoin price may have already hit its macro bottom.

Using historical precedence as a guide, some are arguing that BTC may be posed for a recovery.

The bull market from 2015 to 2017 lasted for 1,064 days, matching with the 2018 to 2021 bull market which lasted the same number of days. If traders match the bear market that followed between 2017 to 2018 and 2021 to the current market, it would take 1,001 days until Bitcoin reaches a new all-time high, according to Twitter user CryptoHornHairs.

Curious about where BTC may be heading in 2023?

Read the full story here on Cointelegraph.

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Regards,

Russell DeCorte
Director
Markets Pro