Bitcoin eyes $21.4K zone as analyst predicts BTC worth 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 worth vary “nicely outlined”

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

The pair edged larger 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 basic energy, Bitcoin continued to keep away from vital corrections, with trade order ebook evaluation revealing $23,000 as the following large resistance zone to crack.

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

“Nothing adjustments sentiment like worth shifting via help or resistance, however for now, the buying and selling vary is nicely outlined.”

BTC/USD order ebook knowledge (Binance). Supply: Materials Indicators/ Twitter

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

When it comes to short-term targets, in style 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 means over there,” he stated in a YouTube update on the day.

The realm round $21,400 was equally necessary for fellow dealer CJ, who told Twitter followers that this may 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 recreation of catch-up between gold and Bitcoin, which researcher and knowledge 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 your complete FTX collapse and approaching the top of the narrative for DCG,” referring to ongoing problems for crypto finance conglomerate, Digital Forex Group.

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

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

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