“To the moon” or “total crash”? Bitcoin Price Hits New 4-Month Highs

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Bitcoin (BTC) soared around Wall Street’s open on Jan. 17 as nervous analysts awaited further clues.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingViewViews differ on the fate of Bitcoin

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD briefly touching $21,594 on Bitstamp, marking its highest level since September 13.

As bullish impulses continued to hit the chart, reactions remained conservative amid suspicion as to the true source of Bitcoin’s comeback.

One such cautious take came from Michal van de Poppe, founder and CEO of trading firm Eight, who observed behavior around a key exponential moving average (EMA) across the crypto.

Food for Thought; The total market cap and market cap of the altcoin are both at the 200-day EMA, while Bitcoin barely breaks it without any volume, he noted.

Markets are bottoming, most likely, but that begs the question of whether we will rally from here. BTC/USD (Bitstamp) 1-day candle chart with 200EMA. Source: Trading View

Meanwhile, popular Crypto trader Tony advised patience when it comes to going long BTC after more than a week of bullishness.

Came to the high range as expected yesterday. Today will await: – A push above and a retest to confirm a safe long position as we are above – A push above and a close below the high of the range. Short trigger, analysis part before declared open.

As Cointelegraph reported, bearish forecasts for the future of BTC price action have accompanied each stage of its surge from two-year lows, including a call for $12,000 to appear next. .

Meanwhile, Cointelegraph readers themselves are becoming more optimistic about Bitcoin’s prospects.

Current responses to our latest Twitter survey favor continued gains, with 37% of over 1,000 users believing Bitcoin is back on its trip to the moon.

However, another 22% fear that the current uptrend will reverse and end in a full crash.

What is your prediction for the market this week?

— Cointelegraph (@Cointelegraph) January 17, 2023 “Is Bitcoin back?”

Elsewhere, on-chain analytics firm Glassnode suggested a “wait and see” approach while discussing how long the good times last.

Related: Bitcoin Price Breakout or Bullish Trap? 5,000 Twitter users weigh in

In the latest edition of its weekly newsletter, “The Week On-Chain,” researchers observed key lines in the sand approaching profitability versus supply.

Bitcoin’s adjusted output-spent profit ratio (aSOPR) metric is poised to cross line 1 from below, marking a potential key shift. If it crosses that line, hodlers will have an overall incentive to sell while making a profit, which could trigger a supply glut and drive the market lower once again.

Cointelegraph previously wrote about SOPR when it hit a two-year low in mid-November.

“With an explosive 23.3% rally to start the year, a wide range of bitcoin investors (and miners) saw their net holdings (and operations) return to profit. This reflects the impact to both from the strong price appreciation, but also from the huge volume of coins that have changed hands over the past few months, resetting their cost base to the downside,” Glassnode concluded.

“With aSOPR and the realized P/L ratio testing for an equilibrium value of 1.0, the test of whether the market can hold onto those gains becomes the next big question.” screenshot). Source: Glassnode

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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