Friday, June 21, 2024

Market Watch Jan 26: Bitcoin Touches $23,000 Again, But Tough Resistance Ahead.

Bitcoin was recently trading at $23,182 after dipping to $22,000 yesterday. The leading cryptocurrency has been up by 2.40% in the last 24 hours and has been consolidating nearly $23,000 for the past few days.

Investors anticipate BTC price to reach $25,000 and $30,000 but it will not be a smooth rise.  Lyn Alden, an economist, believes Bitcoin could face considerable danger in the second half of 2023 as liquidity risks rise. But Cathie Wood, ARK Invest CEO, says crypto assets could see a huge turnaround in 2023 as the Fed pivots due to falling inflation. Edward Moya, the senior market analyst for Oanda, said the January stock market rally might be over and that could drag crypto lower. He outlined that Bitcoin could be vulnerable to a dip toward the $20,000 level if the tech-driven selloff on Wall Street heightens over the next couple of days.

Meanwhile, bears want to stall Bitcoin’s up-move at this level but the bulls do not want to surrender. The increasing 20-day exponential moving average (EMA) at $20,700 and the relative strength index (RSI) in the overbought zone show that bulls are dominant.  Buyers are aiming for $23,371 to kick off the next leg of the rally to $25,211. However, if the BTC price takes a dip and breaks below $22,292, it would halt short-term traders. This would result in selling and Bitcoin could touch $21,480.

Stefan Rust, CEO of Laguna Labs, is cautious about Bitcoin’s near-term prospects. He attributed this to the size of the next interest rate hike by the US central bank. Rust said crypto has gone through 400 days of a bear market and many true believers are seeing the financial markets and decentralized finance institutions have pulled out so much that the DCG/Genesis/Gemini saga is not having an impact on the market.

All for the test.

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