Bitcoin price wants to retest 2017 all-time high near $20K — analysis

1 year ago

Bitcoin (BTC) stayed adjacent $19,000 astatine the Jan. 13 Wall Street unfastened arsenic traders hoped a week of swift gains would stick.

BTC terms "breakout oregon fakeout remains to beryllium seen"

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD crisscrossing the $19,000 people arsenic United States equities began trading.

The brace rapidly took retired sellside liquidity overnight, gapping higher to what on-chain analytics assets Material Indicators forecast could beryllium a retest of the $20,000 mark.

“Seems similar BTC is mounting up for a retest of absorption astatine the 2017 Top,” it wrote successful portion of a Twitter treatment the time prior.

“Whether we spot a bonafide breakout oregon fakeout remains to beryllium seen. Time for patience and discipline.”

An accompanying snapshot of the Binance bid publication confirmed bulls had breached done aggregate merchantability walls.

“Things conscionable got interesting,” Material Indicators added successful comments connected the chart.

Characteristic of the existent climate, others remained firmly risk-off connected Bitcoin contempt year-to-date gains approaching 20%.

Among them was fashionable trader Il Capo of Crypto, who successful classical benignant described existent terms enactment arsenic “one of the biggest bull traps I've ever seen.”

“Bullish euphoria is real, and terms is inactive beneath 20k,” helium added.

Michaël van de Poppe, laminitis and CEO of trading steadfast Eight, likewise cautioned connected overly optimistic reactions to BTC terms performance.

“Funny though, if you look astatine societal media, it’s bull euphoria. If you ticker the chart, you person to zoom retired a batch to spot the full chart,” helium said.

“Bitcoin is inactive -$50,000 from 15 months ago.”

Bitcoin awakens from "volatility slumber"

Regardless of its staying power, Bitcoin’s caller surge higher contrasts powerfully with the chiseled lack of volatility witnessed since the FTX implosion successful aboriginal November.

For on-chain analytics steadfast Glassnode, specified behaviour was arguably owed a shake-up sooner alternatively than later, particularly fixed its persistence done the 2022 yearly candle close.

“The 2022-23 vacation play has been historically quiet, and it is uncommon for specified conditions to instrumentality astir for long,” it wrote successful the latest variation of its play newsletter, “The Week On-Chain,” issued Jan. 9.

“Past occasions wherever BTC and ETH volatility was this debased person preceded highly volatile marketplace environments, with past examples trading some higher and lower.”

Calling the improvement a “volatility slumber,” Glassnode added that “on-chain enactment for the 2 majors remains highly weak, contempt a short-term bump pursuing FTX.”

“Using some on-chain activity, and realized headdress drawdowns, it is harmless to accidental that the excesses of H2-2021 has been mostly expelled from the system,” it concluded.

“This process has been achy for investors, nevertheless has brought marketplace valuations person to their underlying fundamentals.”

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

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