• Bitcoin’s trading range is “well defined” on exchanges, with the pair edging higher at the Wall Street open.
• Data from Cointelegraph Markets Pro and TradingView showed BTC/USD testing but preserving support at $21,000.
• Analysis suggested that Bitcoin’s price could potentially chase gold in a further breakout, with $23,000 as the next big resistance zone to crack.
The world of cryptocurrency has been abuzz in recent weeks as Bitcoin, the most popular cryptocurrency, has reached a new multi-month high. According to data from Cointelegraph Markets Pro and TradingView, BTC/USD tested but preserved support at $21,000. The pair edged higher at the Wall Street open, in line with United States equities as the third trading week of an explosive January drew to an end.
Analysts have suggested that Bitcoin’s price could potentially chase gold in a further breakout. On-chain monitoring resource Material Indicators noted that the lack of BTC liquidity below $18,000 and above $23,000 suggests a lack of sentiment for those levels at this time. However, the trading range is well-defined and there is scope for a further breakout. The next big resistance zone to crack is $23,000.
In order to fully comprehend the current state of Bitcoin, it is important to consider the wider economic context. The U.S. economy continued to show signs of recovery in the latest jobs report, with the unemployment rate falling to 6.7%. This improved sentiment has been reflected in the stock markets, with the S&P 500, Dow Jones, and Nasdaq all hitting new all-time highs.
The U.S. Dollar has also been affected by this positive news, with the currency weakening against its major peers. This has had an impact on Bitcoin, as it has become more attractive for investors looking for an alternative asset. As more money flows into the cryptocurrency, it could potentially reach new highs.
Overall, Bitcoin is currently in a strong position, with a well-defined trading range. However, analysts suggest that there is potential for further growth in the near future. With the US economy continuing to show signs of recovery, and the stock markets reaching new all-time highs, Bitcoin could be set to experience further gains in the coming months. It remains to be seen whether BTC/USD will breach the all-important $23,000 resistance level, but investors will be watching the price action carefully.