Bitcoin on January 21, 2023 – End of Purgatory for Crypto King?

Crypto king’s bear run at the end of the race? – The start of 2023 in Bitcoin seems to be smiling on the bulls. Indeed, Bitcoin would be well on its way to confirming its power flashback from last week. Especially since optimism is somewhat returning to cryptocurrencies thanks to a total market capitalization that has regained $1000 billion. That said, the reasons that explain the crypto king’s current return to grace should encourage caution. Because basically, nothing would be written in stone.

Moreover, the prospect of a change in the Fed’s monetary policy would not be gained in 2023, according to the doubts of some Fed members about the ability to reduce inflation to around 2%. But for now, Bitcoin (BTC) price. unresponsive to his blows and prefers to levitate focusing on the smallest bit of good news.

Now, and in a market context where many investors would like to believe in a fairy tale, let’s examine the latest Bitcoin technical analysis and key levels to watch in the context of a possible end-of-purgatory scenario.

Bitcoin in weekly units – Three weeks in a row?

Maybe they’ll tie for a third straight week of gains, Bitcoin would prove passing $20,000 or ATH 2017. This would constitute a first battle won by the bulls. So the latest signals in weekly units would allow them to look mostly up.

First, the break of the bear downtrend line would start to look serious if the rally continues. Second, this week’s bullish candle has nothing to envy compared to the previous one. Third, yards manage to trample Kijun. And recently, Tenkan is starting a slight comeback after BTC’s favorable price momentum at the beginning of the year.

Unfortunately, the fight against bears is far from over. And for good reason, Bitcoin price and Chikou Span still remain below Kumo (Cloud ofIchimoku). Even if the second is re-linked to prices and the 200-week moving average (MM200 weekly). On the other hand, the thickness of the upcoming Kumo may soften the bulls in view of a favorable trend reversal.

Assuming next week is consistent with the previous three, the situation would be tense for the bears. Because exactly, BTC price may approach weekly 200-MA and $26,000 resistance, not far from the lower limit of Kumo, Senkou Span A (SSA). Which would coincide with a Chikou space which would turn towards Tenkan. And so, this market scenario would avoid the threat of new lows.

>> Prefer to keep your cryptos safe? Select a Ledger wallet (commercial link) <

Bitcoin in daily units – FTX bankruptcy chapter to be closed

In daily units, yesterday’s bullish candle could be a first psychological turning point to the bull side. Why ? Because the price of Bitcoin is distancing itself beyond $20,000 and the 200-day moving average (MM200 daily). And at the same time, it consolidates its position over Kumo. Even better, we are in the process of closing the FTX bankruptcy chapter.

Bitcoin Price Analysis in Daily Units - January 21, 2023

However, the fact that the retracement did not experience a downward breather may reveal overbought signals, such as the large gap between prices and the Tenkan. But as long as both are riding the bullish momentum they are now, I wouldn’t be surprised if the crypto king is still treading water for a while. With the feeling that it could climb to $26,000a level that coincided with the break below the Kumo upper limit last August.

In the event of a recurrent miscarriage immediately occurring, it will be interesting to observe if $20,000 confirms the change in polarity from resistance to support. And if the answer would be positive, then the price of BTC will make higher cuts. This will mean that an uptrend is approaching with the aim of neutralizing once and for all its momentum since the last ATH in November 2021. On the other hand, a direct break below the recently passed thresholds would question the bulls . With the fear that the resumption of the bear run will be back on the table.

In summary, Bitcoin has been boosted by good news such as falling dollar and bond rates linked to hopes of a return to normal monetary policy from the Fed. The icing on the cake, FTX’s downside appears to be partially behind it given that prices are inside the risk zone or exactly $16,000.

It’s just that all this remains of the order of a prediction made by the financial markets, which itself can be counterbalanced at any time. Not only that, inflation in the United States remains high despite falling commodity prices. But if it struggles to land around the central target of 2%, the return ia quantitative easing (liquidity injection) would not be raised.

Personally, I think the US central bank will continue to tighten monetary policy until something breaks. Therefore, let’s not talk too soon about the end of purgatory for the crypto king. Especially since there is nothing settled about the current uncertainties in the financial markets. Above all, high interest rate environments coupled with a lack of liquidity have historically been conducive to unexpected external shocks. This is why investors should wisely wait for a favorable correlation between fundamental analysis and technical analysis to increase their cryptocurrency exposures.

In crypto, do not save carefully! So to keep your crypto assets safe, the best solution is still a personal hardware wallet. In Ledger, there is something for all profiles and all cryptos. Don’t wait to invest your capital in security (trading links)!

Leave a Comment