There are many conflicting opinions on where the Bitcoin price will head next. Some people expect another dip to $20,000, although a push to $25,000 is equally likely. Several technical indicators confirm that may be the next crucial resistance level to overcome.
January 2023 was pretty decent for Bitcoin and other cryptocurrencies. The world’s leading crypto asset gained about $7,000 after bleeding value throughout 2022. Other cryptocurrencies, like Ethereum, XRP, and Litecoin, all lost tremendous value in 2022 but benefited from the rebound in January. However, most assets still trade well below their previous all-time highs.
Even at today’s price of $23,500, Bitcoin is still 66% removed from its all-time high. It reached a value of over $69,000 on November 10, 2021. Returning to that stellar bitcoin price isn’t impossible, although it will take a while. However, the “big dip” seems to be in the past, even if the overarching market momentum remains a tad bearish.
With the recent bullish momentum in the books, it is time to look at the future Bitcoin price levels. The technical indicators give a decent “BUY” signal across all crucial metrics. In addition, the moving averages give off a “Strong buy” signal. On the other hand, the Oscillators are neutral, which is all one can ask for after a minor Bitcoin price setback.
Benjamin Cowen points out how $25,000 is the next Bitcoin price objective. More specifically, the 50-week SMA and 200-week SMA appears to converge near that price level. Coincidentally, $25,000 is also the Summer 2022 “top” for Bitcoin, or close to it.
However, it remains unclear if the market momentum can sustain a push to $25k and above. Momentum has stalled a bit ahead of the weekend, bringing all markets down a few pegs.
The Bitcoin price will likely encounter some resistance before $25,000, though. Short-term indicators hint at “SELL” across the board, and the monthly indicators are “SELL” for two our of three metrics.
It will be interesting to see how the markets respond to these new challenges and whether a higher Bitcoin price is possible in February.
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