Bitcoin halts volatility at $23,000 as BTC hodlers see massive return to profits

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Bitcoin (BTC) traded sideways at Wall Street’s open on Jan. 24, with analysts unsure where the price would go next.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingViewBTC price holds below key resistance

Data from Cointelegraph Markets Pro and TradingView tracked a day of consolidation for BTC/USD, which continued to linger near $23,000.

The pair saw little reaction to early trading, including technical issues on the New York Stock Exchange, while macroeconomic data from the United States also failed to change the status quo.

Bitcoin therefore lacked direction after establishing a narrower trading range on January 20.

Bitcoin was unable to clear crucial resistance at $23.1K, summarized Cointelegraph contributor Michal van de Poppe.

If we continue to make LH, test and probably sweep around $22.3000 before continuing. Offers serious buying opportunities. BTC/USD annotated chart. Source: Michal van de Poppe/Twitter

A subsequent Twitter survey showed how torn the average market participant was about where the market might go. At the time of writing, 47.8% of the roughly 4,000 responses agreed that a correction should take place in Bitcoin, with the remaining 52.2% betting on a trip to $25,000.

Choppy price action with no clear pattern or direction, trader Daan Crypto Trades continued with a chart with targets.

On the intraday, I mainly look at those white areas being the high volume nodes with the daily and weekly open. Expansion above 23.1 and below 22.6K. Chop up there. BTC/USD annotated chart. Source: Daan Crypto Trades/Twitter

Discussing the likelihood of a further upside, fellow trader Gaah, meanwhile, pointed to $24,000 as an important level to watch.

Earlier, Cointelegraph had reported on the importance of the surrounding area, it is a site of short liquidations with a 200-week moving average of Bitcoin above.

The first positive reversal sign is that $20.8,000 is bottoming out. The second positive sign is that $24,000 becomes the upper floor, according to Gaahs analysis.

Bitcoin sends hodlers into the dark

Zooming out, it was on-chain analytics firm Glassnode that was cautiously bullish on the significance of the BTC price breakout.

Related:BTC metrics come out of capitulation 5 things to know about Bitcoin this week

By reaching current levels, he noted, BTC/USD had breached three key trendlines in one fell swoop, something that hadn’t happened since March 2020.

The recent Bitcoin price surge has resulted in a first break above all three cost bases for the first time since the 2018/19 bear market and the March 2020 Covid crisis, accompanying comments read.

Extended duration above these key psychological levels would be considered constructive.

The chart showed the cost bases of the aggregate price paid for short and long term Bitcoin holders, as well as the realized price which reflects the aggregate price at which supply last moved.

BTC/USD annotated chart. Source: Glassnode/Twitter

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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