Bitcoin’s best-case scenario is $25,000 before a correction, one trader believes, while BTC’s appreciation slows.
rose above $23,000 at the Wall Street open in January. 31 while the markets are preparing for a new macroeconomic charge. Trader: $25,000 “best case” for BTC/USD
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was gaining about 1% per candle in the hour before trading began, surpassing potential overnight resistance.
With hours remaining until the month’s close, the pair remained about $800 below its weekend highs, which, at $23,950, marked Bitcoin’s strongest performance since mid-2022.
Assessing the scenario, however, traders were not convinced that the largest cryptocurrency would produce further gains in February.
January saw a gain of over 40%, making it Bitcoin’s best first month of the year since 2013.
“Minimum up to $25,000 is absolutely a good deal for me in Bitcoin,” popular trader Crypto Tony told Twitter followers that day.
He added that he expects a “creepy February” with a target price of $21,400 and even $19,000.
Crypto Tony also pointed to the US dollar, which rose to two-week highs on the day and continued a four-day rally. The US Dollar Index (DXY) tends to be inversely correlated with crypto markets.
On a related note, fellow trader and analyst Scott Melker, known as “The Wolf of All Streets,” focused on the closing of the weekly S&P 500 candle after the index closed above its running 50-week moving average for the first time since April of last year.
“SPY closed a weekly candle above the 50 MA for the first time since April. We are now testing it as support, with the FOMC coming up tomorrow and it is likely to be a volatile week. Expect to close on Friday,” he tweeted that day.
Bitcoin sparks a surge to all-time highs
The official analysis of the analytical company Glassnode on the chain, however, missed the forecast for next month.
Related: Best January since 2013? 5 things you need to know about Bitcoin this week
In the latest edition of their weekly magazine, “The Week On-Chain”, analysts focused on the significance of January as the month in which Bitcoin revived.
“As the end of January approaches, Bitcoin markets are seeing their strongest monthly price performance since October 2021, fueled by historic spot demand and a series of short clicks, in a nutshell.
“This increase has brought much of the market back into profit, and allowed futures markets to trade in healthy contango. We also note that the initial exchange liquidity momentum, post-FTX, has settled to neutral and is now balanced by new inflows being encouraged.”
As Cointelegraph previously reported, various sources believe that Bitcoin’s rally is already coming to an end.