Bitcoin surges to its highest price in 2023 as crypto momentum builds
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(Kitco News) – The cryptocurrency market came under pressure during early practice on Wednesday, struggling to gain momentum until later in the afternoon when prices started trending higher and bitcoin bulls turned their eyes on resistance at 23,000 $ to overcome.
Stocks also pulled back on the market open and spent the rest of the trading session fighting their way up to get back to the day. At the close in the US, the S&P and Nasdaq managed to recoup most of the losses, finishing down 0.02% and 0.18% respectively, while the Dow was able to climb into positive territory and along with the day up 0.03%.
Data from TradingView shows that Bitcoin (BTC) bears made multiple attempts to push the price lower during Wednesday’s trading, eventually sending BTC to a daily low of $22,345 before bulls managed to push it back above Bid $22,800. In an afternoon rally, the top crypto hit a daily high of $23,829.
BTC/USD 4 hour chart. Source: TradingView
Kitco senior technical analyst Jim Wyckoff called the early-morning drawdown “a routine corrective pullback after hitting a four-month high this week,” and indicated that it had no material impact on Bitcoin’s current outlook.
“BC bulls still have the solid short-term overall technical advantage amid a steep price uptrend on the daily bar chart,” Wyckoff said, which “suggests more price upside potential in the short-term.”
Range limited before climbing to $25,000
Providing further insight into what may be next for Bitcoin, market analyst Duo Nine posted the following tweet noting the potential for a pullback to $21,000 or a range bound trade between $22,000 and $23,000.
#Bitcoin Pennant collapsed. 👇
Let’s see if the price makes a deeper low. If so, expect a retest of the 21,000 breakout level.
This could also expand into a large range between 22,000 – 23,000 for the time being.
A full pullback to the breakout point could be a sign of weakness.#BTCUSD #BTC pic.twitter.com/RMbdIlyzt8
— Duo Nine | discord.gg/ycc (@DU09BTC) January 25, 2023
The prospect of range bound trading was also noted by market analyst Crypto Tony, who provided the chart below, which highlights the possibility of a continuation of the uptrend towards mid-February after a corrective wave.
That’s what I’m looking for #Bitcoin with a corrective wave followed by another leg up to my $25k total
Invalidation is when we started collapsing from here pic.twitter.com/tzWxIKTTMW
— Crypto Tony (@CryptoTony__) January 25, 2023
And a final look at how the current price action for Bitcoin compares to previous cycles came from crypto analyst Mustache, who noted that one specific indicator suggests a bull market could be on the verge of ramping up.
#Bitcoin$BTC has recaptured the 0.236 line🔴 in the MZ BTC Bottom Indicator (W).
After such a long downtrend, this has only happened in 15, 19 and 20 so far.
There was a fake in ’15, once before the bull run started.
In ’19 and ’20 this immediately started a long upward trend.🎯 pic.twitter.com/VRO6MCVwFk— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) January 25, 2023
Select altcoins are moving higher
The downward pressure in the crypto market has pushed the majority of altcoins into the red for the day, save for a few notable standouts whose prices have skyrocketed.
Daily performance of the cryptocurrency market. Source: Coin360
The day’s biggest gainer was LCX (LCX), which climbed 41.56% to hit an intraday high of $0.158, followed by Aptos (APT) gaining 41.02% and Hooked gaining 20.43% Protocol (HOOK).
The total cryptocurrency market cap is now $1.038 trillion and Bitcoin’s dominance rate is 42.5%.
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