Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD is up about 1% in one hourly candle before trading begins, overcoming resistance found overnight.
With hours until the monthly close, the pair remained around $800 from its weekend highs, which, at $23,950, was Bitcoin’s strongest performance since mid-2022.
However, when examining the status quo, traders were not convinced that the largest cryptocurrency would make further gains in February.
January saw a rally of over 40%, making it Bitcoin’s best month of the year since 2013.
“Another rally to $25,000 is the best case ever for me on Bitcoin,” famous Crypto trader Tony told his Twitter followers that day.
He added that he expects a “downward February” with price targets reaching $21,400 and $19,000.
Annotated BTC/USD chart. Source: Crypto Tony / Twitter
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Crypto Tony also noted the US dollar, which rose to two-week highs on the day to extend the four-day bullish trend. The US Dollar Index (DXY) is traditionally inversely correlated to the cryptocurrency markets.
On that note, trader and analyst Scott Melker, better known as “The Wolf Of All Streets,” focused on the weekly candle close for the S&P 500 after the index closed above its 50-week moving average for the first time since April last year.
SPY closed a weekly candle above the moving average 50 for the first time since April. It is currently being tested as support, with the FOMC coming in tomorrow and potentially a choppy week. Watch closing on Friday,” he tweeted that day.
US Dollar Index (DXY) chart in the form of a one-day candle. Source: TradingView
Bitcoin calls for an all-time high
However, official analysis from on-chain analytics firm Glassnode has diverged from predictions for the coming month.
Related: Best January since 2013? 5 things to know in bitcoin this week
In the latest edition of its weekly newsletter, “The Week On-Chain,” analysts highlighted the significance of January as the month Bitcoin came to life.
As we approach the end of January, bitcoin markets have seen their strongest monthly price performance since October 2021, supported by both historic spot demand, and a series of short squeezes.
“This rally has returned much of the market to earnings, and has the futures markets trading in a good mood. We also note that the initial impulse for exchange outflows, in the wake of FTX has subsided to neutral, and is now being offset by freshly motivated inflows “.
As previously reported by Cointelegraph, various sources believe that Bitcoin’s rally is already coming to an end.