With both short-term and long-term investors back in the black, Bitcoin is undecided on where to go next.
On Jan. 24, Wall Street traded sideways at the open, with analysts at a loss as to where the price would go next.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
The price of BTC is holding down from major resistance
Data from Cointelegraph Markets Pro and TradingView tracked a day of consolidation for BTC/USD, which remained near $23,000.
Early in trading, the pair received little response, including technical problems on the New York Stock Exchange, while US macroeconomic data also failed to alter the status quo
Thus, after establishing a narrow trading range on January 20, Bitcoin lacked direction.
“Bitcoin failed to break through a significant resistance at the $23.1K price,” summarized Cointelegraph contributor Michael van de Poppe.
“If we build LH, we’ll probably test and sweep about $22.3K before moving forward. It subsidizes some serious buying opportunities.”
BTC/USD Annotated Chart. Source: Michael van de Poppe/Twitter
A subsequent Twitter survey revealed how torn the average market participant is on where the market could go next. At the time of writing, 47.8% of the nearly 4,000 responses agreed that Bitcoin should improve, with the remaining 52.2% betting on a trip up to $25,000
Trader Dan Crypto Trades continued alongside the chart with the target, “Choppy price action without a clear pattern or direction.
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“Within the day we mainly see these white areas with a high volume of nodes that open daily and weekly. Width above 23.1 and below 22.6K. In the meantime, let’s fuck.”
BTC/USD Annotated Chart. Source: Dan Crypto Trades/Twitter
Discussing the possibility of upside continuation, fellow trader Gah, meanwhile, highlighted $24,000 as an important level to watch.
Previously Cointelegraph reported on the importance of the surrounding area, it is the site of a small liquidation above Bitcoin’s 200-week moving average
“The first positive sign of a reversal is the low of $20.8k. The other positive sign is $24k on the next floor,” read part of Gah’s analysis.
Bitcoin sends hoddlers into the black
To zoom out, it was on-chain analytics firm Glassnode tha who was cautiously optimistic about the significance of the BTC price breakdown.
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To reach current levels, it noted that BTC/USD crossed three major trend lines in one fell swoop, this has not happened since March 2020.
“The recent surge in bitcoin price action has resulted in an early breakout above all three price-bases for the first time since the 2018/19 bear market and the March 2020 COVID-19 crisis,” the attached note said.
“A sustained period above this key psychological level would be considered constructive.”
The chart shows the price base for short-term and long-term bitcoin holders — the total value paid — as well as the realized value that reflects the total price at which supply last ran
BTC/USD Annotated Chart. Source: Glassnode/Twitter
The views, opinions and opinions expressed herein are those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph