Next stop – The price of Bitcoin (BTC) recovers $18,000 and then $19,000. Traders are now looking at levels that could be the next major resistances, which could trigger a major correction.
Bitcoin price above $19,000
Bitcoin price surpasses $19,000 on Bitfinex today, January 12, 2023. Cryptocurrency it is trading at $19,070 at the time of writing this article. Its price is currently posting a significant daily gain of 6.26%.
Bitcoin price then moved back above $19,000 for the first time after losing that level on Nov. 8 when the FTX woes started. The bulls are long-term, apparently benefiting from the release of the US consumer price index, which came in at 6.5% on an annual basis.
This rate is in line with most forecasts. Now the markets seem to be aiming even more for an upside 25 basis points federal funds rates at the next FOMC meeting.
This increase is smaller than December’s increase of 50 basis points which, in turn, followed three successive increases of 75 basis points.
Even if the markets do not yet see a real pivot in the evolution of the federal funds rate, the reduction in the size of the increases over time seems yes profit from risky activities.
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$19,500 is the next big hurdle for Bitcoin
Following this rally above $19,000, traders are trying to determine the next key levels to watch in order to anticipate a possible bullish continuation or a strong correction.
Trader Rekt Capital thus indicated that the price of Bitcoin “is sandwiched between two main monthly levels”, which are the $13,900 and the $19,500. Bitcoin closed the first ten months of 2022 above $19,500, despite some bearish wicks below. This monthly support then gave way following the fall of FTX in November.
Rekt Capital points out that Bitcoin has never turned the $19,500 into resistance after breaking that support. There would therefore be a possibility that happens in this move “.
Bitcoin may therefore find it difficult to sustainably return above this level. However, if successful, Rekt Capital estimates there would be a recovery to levels around $19,500 bullish for bitcoin.
Bitcoin price has yet to confirm its $19,000 recapture
But before we can hang up on that $19,500, Bitcoin’s daily price chart shows that the Chikou Span (green curve) must first reach exit the Kumo (cloud). Such a turnaround would provide a stronger bullish signal (confirmation) on a daily basis.
If Bitcoin manages to continue its climb above $19,000, the $19,500 Rekt Capital is aiming for is near Kijun Sen (red line) on a weekly basis. A weekly close above the Kijun Sen could therefore be the next big challenge for the bulls.
This trader is already interested in the $21,000
The founder of trading company Eight, Michaël van de Poppe, is interested higher price points than those mentioned by Rekt Capital. He pointed out that “liquidity has been driven above the highs”, and Bitcoin has thus been able to accelerate its ascent.
For Michaël van de Poppe, after today’s bullish impulse, “the question is whether we will continue the rally” towards $20,000-$21,000 “or whether we will calm down”.
Bitcoin is experiencing a breakthrough week and the bulls have managed to break through significant resistance in the cryptocurrency. However, the more cautious are still waiting for rises well above the current levels, to rule out the scenario of a fall below $17,000 in the very short term.
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