Bitcoin price takes its breath away at $21,000 in two months

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Bitcoin price extends the week-long rally that saw it top $20,000 for the first time since early November. The bulls have $24,000 in sight, but first they need to disperse the congestion zone of stubborn sellers at $21,000.

Bitcoin price on the cusp of a bull market

Over the past two weeks, Bitcoin price has frowned on calls for further downside action at $13,000 and $9,000, and analysts are changing the tone in favor of a sustainable upside breakout.

BTC/USD daily chart

The bullish outlook for BTC price began after it tipped above the 50-day exponential moving average (EMA) (in red). However, the next break after the 100-day EMA (in blue) resolved the presence of the bulls in the market, paving the way for a much-needed move through the downtrend line (dotted).

Bitcoin price is now trading at $20,720 after hitting a new yearly high of $21,383 as the green candle stretched its wick. A breakout of resistance at the 200-day EMA (in purple) is needed for BTC to confirm a bullish macro outlook.

Altcoin Sherpa, a popular crypto analyst and trader, told his 188,000+ Twitter followers that investors should consider taking advantage of the 200-day supply zone EMA. “The overall movement seems a bit exaggerated and some pullback should occur. Still don’t think this is the overall bottom of the macro, but let’s see,” he wrote.

Therefore, a daily close above this level would be crucial for Bitcoin price as the bulls push for another sharp move to $24,000 and $30,000 thereafter. Failure to do so would encourage more investors to take profits in hopes of buying a low-priced BTC on the downside.

According to another crypto analyst, Mags, “the price of bitcoin is approaching the average level around $21,500”. It’s worth mentioning that the price wiped out the entire FTX implosion dump. From there, the “best case scenario would be a continuation to $25,000 without re-testing $18.7,000,” Mags said.

As experts call for a continued move north, Capt Faibik told his 44,000 followers that “once the resistance at 21.3000 breaks down, the 2023 bull run will officially begin.” For now, the path with the least resistance appears to be maintaining its northerly direction, supported by a buy signal from the Moving Average Convergence Divergence (MACD) indicator on the same daily chart.

Traders looking for longer Bitcoin positions should wait for the 200-day EMA resistance to break down. Additionally, they need to ensure that the MACD maintains the uptrend above the middle line and its histograms remain green.

Fundamentals Return Bitcoin Price Relief Rally

The more than 1.56 million addresses that previously bought 816 BTC between $18,943 and $19,549 will likely continue to weigh on Bitcoin’s price as it climbs towards $30,000. Additionally, IntoTheBlock’s IOMAP pattern shows that the largest cryptocurrency is facing declining resistances above $20,000.

Bitcoin IOMAP Model

As seen in the chart below, Bitcoin price is in a suitable position to keep the rally intact instead of pulling back below $20,000. Still, if investors take massive profits, the air pressure may force it to test the support at $18,500 and $15,500.

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