Bitcoin price wants to retest analysis of 2017 all-time high near $20,000

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Bitcoin (BTC) remained near $19,000 at Wall Street’s open on Jan. 13 as traders hoped a week of rapid gains would hold.

BTC/USD 1-da candle chart (Bitstamp). Source: TradingViewBTC Course “breakout or counterfeit remains to be seen”

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD breaching the $19,000 mark as US stocks began trading.

The pair quickly pulled sell-side liquidity overnight, further deviating from what the on-chain analysis resource predicts Material Indicators could be a retest of the $20,000 mark.

It looks like BTC is gearing up for another stress test at the 2017 Top, he wrote in a Twitter chat the day before.

Whether we are witnessing a real breakout or a fakeout remains to be seen. Time for patience and discipline.

A snapshot of Binance’s order book confirmed that the bulls broke through several sell walls.

Things got interesting, material indicators were added in chart comments.

BTC/USD order book data (Binance). Source: Materials Indicators/Twitter

Characteristic of the current climate, others have remained firmly risk-free on Bitcoin despite year-to-date gains approaching 20%.

Among them was popular Crypto trader Il Capo, who in classic style described the current price action as one of the biggest bull traps I have ever seen.

The bullish euphoria is real and the price is still below 20,000, he added.

Vote now!

Michal van de Poppe, founder and CEO of trading company Eight, also cautioned against overly optimistic reactions to BTC price performance.

It’s funny though, if you look at social media, it’s bull euphoria. If you look at the chart, you have to zoom out a lot to see the entire chart, he said.

Bitcoin is still at -$50,000 from 15 months ago. Bitcoin wakes up from the “volatility slumber”

Regardless of its resistance, Bitcoin’s recent surge contrasts sharply with the distinct lack of volatility seen since FTX’s implosion in early November.

Related:Bitcoin Gained 300% the Year Before the Last Halving Is 2023 Different?

For on-chain analytics firm Glassnode, such behavior was arguably due to an upheaval as soon as possible, especially given its persistence until the candle’s annual close in 2022.

The 2022-23 holiday period has been historically quiet, and it’s rare for such conditions to last long, he wrote in the latest edition of his weekly newsletter, The Week On-Chain, published Jan. 9.

Past occasions when BTC and ETH volatility were this low preceded extremely volatile market environments, with past examples trading both up and down.

Calling the sleep phenomenon a volatility, Glassnode added that on-chain activity for both majors remains extremely low, despite a short-term uptick after FTX.

Using both on-chain activity and realized cap drops, it’s safe to say that H2-2021 excesses have been largely expelled from the system, he concluded.

This process was painful for investors, but brought market valuations closer to their underlying fundamentals. Bitcoin Historical Volatility Index (BVOL) 1 week candle chart. Source: Trading View

The views, thoughts and opinions expressed herein are the sole authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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