Bitcoin price is steamrolling above the all-important $20,000 level, leading analysts to speculate on where BTC price might go.
hit a yearly high of $21,095 on Jan. 13, where is it headed next?
Bitcoin is currently witnessing an uptick in bullish momentum after the positively perceived Consumer Price Index (CPI) report was followed by a strong rally across the crypto market.
The recent rally in Bitcoin is creating increased volume levels and higher social engagement on whether the price is in a breakout of fakeout mode.
Is the Bitcoin bear market over?
While the market is still technically in a bear market compared to last week, investor sentiment is improving. According to the Fear and Greed Index, a crypto-specific metric that measures sentiment using five weighted sources, investors’ feelings about the market hit a monthly high.
Bitcoin price is now above the psychologically important $21,000 level and many analysts and traders are issuing their thoughts on where BTC price could head next.
Let’s explore a few of these perspectives.
Bitcoin trading volumes remain a concern
Bitcoin price has yet to recover from its pre-FTX levels but reached above $21,095 on Jan. 13 for the first time since Nov. 8, 2022. Despite the strength of the recent rally, some analysts believe BTC price needs to remain above the $21,000 support before the current bullish trend can be sustained.
According to Glassnode analysis:
“A renewed bullish trend that started on January 1st drove bitcoin to the $18.6 – $18.9k level, yet a cross over to $19k is necessary to claim a new trading channel around $19-$21k. Resistance is expected around these levels as bitcoin faces a mid-term downward trend. If the price fails to break over the trend line, we expect a retrace toward the $16-$17k area.”
The lack of trading volume of around $18,000 shows the weakness in the current on-chain and centralized exchange (CEX) activity. The largest volumes and overall activity seem to surround the $16,000 level, suggesting that is a more solid floor than the current price range. With less volume surrounding levels higher than $21,000, Bitcoin’s rally could be capped at $21,095.