Bitcoin price

After finding strong support in the range of $16,393 to $16,526 by late 2022, Bitcoin’s price started the new year with a 3.08% surge during its initial trading week in 2023. This triggered renewed interest and traction for cryptocurrency markets, causing BTC to shoot up suddenly by 21.95%, pushing into the next trading week with even more momentum.

As the cryptocurrency market regains its footing, investors and traders alike are keen to discover if BTC has indeed seen its bottom, as well as whether 2023 will bring a resurgence for the cryptocurrency market as a whole.

Bitcoin Price Technical Analysis and BTC Price Prediction

Bitcoin (BTC) continues to show potential for a strong rally in the short term, with technical indicators pointing to a potential move above $25,000 in the following weeks.

Bitcoin has recently broken out of a descending channel range, accompanied by an increase in trading volume. This breakout has pushed the price above key resistance levels at $20,000 and its 20-week exponential moving average (20-week EMA) near $19,500.

This strong move, along with the accompanying volume, suggests that traders are confident in an extended price rally. The next upside target for Bitcoin appears to be its 200-week EMA in confluence with its 50-week EMA, which is currently around $25,000, an additional 20% rise from current levels.

Additionally, the relatively weaker US dollar, which has been down due to expectations of the Federal Reserve stopping interest rate increases and lowering inflation, is also contributing to the bullish outlook for Bitcoin.

Bitcoin’s price is at $20,966 as of writing, and the 20-day EMA is at $18,342, the 50-day EMA is at $17,730, 100-day EMA at $18,249 and the 200-day EMA at $20,985, which all suggest that the current trend is bullish. The volume of 27.243K and the volume moving average of 30.812K also suggest a bullish trend, as well as the RSI at 85.93. The Macd indicators are also bullish, with the Histogram at 462.22, the MACD at 930.88, and the signal line at 368.39.

Bitcoin’s price is currently trading under the resistance area of $21,302 to $21,895 and has been rejected for the past three days. This area is also in confluence with the 200-day EMA of $20,985. A successful breakout from this area could push the Bitcoin price up to the psychological resistance of $25,000. Immediate support for Bitcoin is at $20,000.

On-chain data shows that the buying trend lacks support from institutional investors. The total amount of Bitcoin held by digital assets holdings such as trusts, ETFs, and funds has been declining during the coin’s price increase in recent months, according to CryptoQuant’s Fund Holdings index.

Overall, while the current technical indicators are pointing to a strong short-term rally for Bitcoin, it’s important to keep an eye on institutional buying trends to gauge the long-term sustainability of the rally. Investors should be cautious and do their own research before making any investment decisions.

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