Bitocoin Price Prediction: The trend is your friend

Bitcoin price is in consolidation mode after rising 5% on January 17.
The bulls could rally towards the $26,500 liquidity zone.
Invalidation of the bullish thesis is a breach below the crossing indicators at $22,985.

Bitcoin price displays technicals that reinforce the newly established bullish narrative. Traders should keep a close eye on Bitcoin as an uptick and volatility will likely occur.

Bitcoin price might rally again

Bitcoin price is trading range-bound after a 5% gain on January 17. According to the Binance exchange API, the 5% uptick witnessed the largest amount of transactions for Bitcoin this year, as $495,000 transactions occurred during the upswing. The spike came one day after the bears forged a 3% decline which also was the largest volume day at the time, with approximately $450,000 in transactions. It is worth noting that the bearish candle was nearly entirely reversed as the bulls closed above the previous day's opening price at $24,569 on January 17.

Bitcoin price is currently trading at $24,646. The 8-day exponential moving average (EMA) is approaching a bullish cross above the 21-day simple moving average (SMA), which could potentially lead to a spike toward higher price levels. The colliding indicators suggest that in the short term, the trend is moving towards a bullish bias, likely to attract more buyers to the market.

Given the potential cross of the 8-day EMA above the 21-day SMA, there is a chance that Bitcoin's price could experience a hurdle of the $25,000 and continue on with the winter Rally. A conservative target would be the $26,500 level, an untagged liquidity level from 2022’s liquidation event. A breach of the $26,500 region would result in a 7.4% increase in market value.

BTC/USDT 1-Day Chart

Invalidation of the bullish thesis would occur if Bitcoin's price were to breach below the crossing indicators at $22,985.If the breach occurs, Bitcoin could potentially retest the support level at $21,000, which translates into a 15% decline from Bitcoin’s price today.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram