Bitcoin poised for another attack on $24K as trader predicts 'bearish February'

Bitcoin (BTC) roseate supra $23,000 into the Jan. 31 Wall Street unfastened arsenic markets braced for a caller macroeconomic reckoning.

BTC/USD 1-hour candle illustration (Bitstamp). Source: TradingView

Trader: $25,000 "best case" for BTC/USD

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD gaining astir 1% successful a azygous hourly candle earlier the commencement of trading, overcoming absorption successful spot overnight.

With hours to spell until the monthly close, the brace remained astir $800 abbreviated of its weekend highs, which astatine $23,950 marked Bitcoin’s strongest show since mid-2022.

Inspecting the presumption quo, however, traders were unconvinced that the largest cryptocurrency would nutrient further gains successful February.

January, had produced upside of implicit 40%, making it Bitcoin’s champion archetypal period of the twelvemonth since 2013.

“Another precocious up to $25,000 is the implicit champion lawsuit for maine connected Bitcoin,” fashionable trader Crypto Tony told Twitter followers connected the day.

He added that helium expected a “bearish February” with terms targets of $21,400 and adjacent $19,000.

BTC/USD annotated chart. Source: Crypto Tony/ Twitter

Crypto Tony besides referenced the U.S. dollar, which spiked to two-week highs connected the time to proceed a four-day uptrend. The U.S. dollar scale (DXY) is traditionally inversely correlated with crypto markets.

On that note, chap trader and expert Scott Melker, known arsenic “The Wolf of All Streets,” focused connected the play candle adjacent of the S&P 500 aft the scale closed supra its 50-week moving mean for the archetypal clip since April past year.

“SPY closed a play candle supra the 50 MA for the archetypal clip since April. Currently investigating it arsenic support, with FOMC coming time and a volatile week likely. Watch the adjacent connected Friday,” helium tweeted connected the day.

U.S. dollar scale (DXY) 1-day candle chart. Source: TradingView

Bitcoin evokes run-up to all-time highs

Formal investigation from on-chain analytics steadfast Glassnode nevertheless steered wide of predictions for adjacent month.

Related: Best January since 2013? 5 things to cognize successful Bitcoin this week

In the latest variation of its play newsletter, "The Week On-Chain," analysts focused connected the value of January arsenic the period that Bitcoin came backmost to life.

"As the extremity of January approaches, Bitcoin markets person seen the strongest monthly terms show since Oct-2021, fueled by some historical spot demand, and a series of abbreviated squeezes," it summarized.

"This rally has brought a ample information of the marketplace backmost into profit, and resulted successful futures markets trading astatine a steadfast contango. We besides enactment that archetypal impulse of speech outflows, successful the aftermath of FTX person calmed to neutral, and are present balanced by recently motivated inflows."

As Cointelegraph reported earlier, assorted sources judge that Bitcoin's rally is already coming to an end.

The views, thoughts and opinions expressed present are the authors’ unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.