- bitcoin price is in consolidation mode after rising 5% on January 17
- The bulls could rally towards the $26,500 liquidity zone
- Invalidation of the bullish thesis is a breach below the crossing indicators at $22,985.
Bitcoin price displays technicals that reinforce the newly established bullish narrative. Traider should keep a close eye on Bitcoin as an uptick and volatility is likely to occur.
Bitcoin price might rally again
Bitcoin price is trading range-bound after a 5% gain on January 17. According to the Binance exchange API, the 5% uptivk witnessed the largest amount of transactions for Bitcoin this year as $495,000 transactions occured during the upswing. The spike came one day after the bears forged a 3% decline which also was the largest volume day at the time, with approximately $450,000 transactions. It is worth noting that the bearish candle was nearly entirely reversed as the bulls closed above the previous day’s opening price at $24,569 on January 17.
Bitcoin price is currently trading at $24,646. The 8-day exponential moving average (EMA) is approaching a bullish cross above the 21-day simple moving average (SMA), which could potentially lead to a spike toward higher price levels. The colliding indicators suggest that in the short-term, the trend is moving towards a bullish bias, likely to attract more buyers to the market.
Given the potential cross of the 8-day EMA above the 21-day SMA, there is a chance that Bitcoin’s price could experience a hurdle of the $25,000 and continue on with the winter Rally. A conservative target would be the $26,500 level, an untagged liquidity level from 2022’s liquidation event. A breach of the $26,500 region would result in a 7.4% increase in market value.
BTC/USDT 1-Day Chart
Invalidation of the bullish thesis would occur if Bitcoin’s price were to breach below the crossing indicators at $22,985.If the breach occurs, Bitcoin could potentially retest the support level at $21,000, which translates into a 15% decline from Bitcoin’s price today.