In a weekend move, Bitcoin increased over $21,000 on January 14, following hopes that inflation has peaked and the market has bottomed. The largest cryptocurrency rose by up to 7.5% to $21,299 before easing slightly. At the time of writing, Bitcoin was trading at $21,002. Since November 8, it hadn’t risen beyond $20,000, and Saturday marked the 11th day in a row of gains. Data from CoinGecko shows that the total market capitalization of the cryptocurrency industry surpassed $1 trillion for the first time since early November. Using onchain data, Ki Young Ju, CEO of Cryptoquant, noted that someone purchased BTC futures worth almost $4 billion in market orders in the lead-up to the Bitcoin rally, and millions worth of short positions have been liquidated on all exchanges. Ki Young Ju also highlighted one important indicator: premium has returned, favoring Bitcoin bulls, indicating a positive shift in sentiment for Bitcoin in the US. “Bitcoin market sentiment turned positive in the US. It was traded over +1.27% premium per minute on Coinbase as of Jan 13th, 2023 at 19:38 EST” Ki Young Ju tweeted.
Key Levels
Resistance Levels: $27,000, $25,000, $22,000
Support Levels: $20,000, $18,500, $16,500
BTC/USD Daily ChartOn the daily chart, the price rebound past the moving average (MA 200) denotes bullish pressure. As the No. 1 cryptocurrency fought to maintain its position above the support level of $20,000, which served as a barrier between the high of last November and mid-October, near-term selling activity also eased, thanks to an increase in positive actions and a decrease in negative momentum.
Overall, after falling to $15,460, Bitcoin has recovered some of its losses. Buyers’ emergence around the $17,500 handle may try to sustain the positive rebound because the loss produced a yearly low. The bullish Relative Strength Index, which indicates a continuation in the rising momentum, might hasten the rebound toward the $25,000 zone
BTC/USD 4-Hour ChartThe short-term oscillators currently indicate bulls are encouraging further increases in the pair over the $20,000 level. Bears may sell, though, if the price rises over the next horizontal resistance, which is $22,000. Initial upside friction may start near $25,000 if buyers are successful in extending the rebound toward this area.
Otherwise, first support could come from the $20,000 level, with lower support at $18,500 if positive factors begin to fade. And should the downward trend continue, the price may aim for the $17,500 short-term moving average (MA 50 & MA 200) zone. For bulls to outnumber bears on the BTC/USD pair, buyers must push the price over the $25,000 level.
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