Bitcoin eyes $21.4K zone as analyst predicts BTC value will chase gold

Bitcoin (BTC) rose towards new multi-month highs on Jan. 20 as evaluation predicted a brand new buying and selling vary above $18,000.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

Bitcoin value vary “properly outlined”

Knowledge from Cointelegraph Markets Professional and TradingView confirmed BTC/USD testing however preserving assist at $21,000.

The pair edged greater on the Wall Avenue open, according to United States equities because the third buying and selling week of an explosive January drew to an finish.

Regardless of misgivings over the rally’s elementary power, Bitcoin continued to keep away from vital corrections, with trade order ebook evaluation revealing $23,000 as the following huge resistance zone to crack.

“I view the dearth of BTC liquidity under $18k and above $23k as an absence of sentiment for these ranges at the moment,” on-chain monitoring useful resource Materials Indicators wrote in a part of commentary in regards to the Binance order ebook setup.

“Nothing modifications sentiment like value transferring by means of assist or resistance, however for now, the buying and selling vary is properly outlined.”

BTC/USD order ebook knowledge (Binance). Supply: Materials Indicators/ Twitter

An accompanying chart additionally revealed vital bid assist in place at simply above the psychologically vital $20,000 mark.

By way of short-term targets, well-liked dealer and analyst Crypto Ed hoped for a visit to $21,500 earlier than a turnaround with a draw back goal of $19,800.

“I nonetheless consider that we’ll get there, and perhaps we’re already on our manner over there,” he stated in a YouTube replace on the day.

The realm round $21,400 was equally essential for fellow dealer CJ, who advised Twitter followers that this is able to be an appropriate place to “tag longs.”

Analyst: Bitcoin ought to “shut hole” with gold

Zooming out, others centered on continued spectacular strikes by secure haven gold, which had hit a brand new nine-month excessive on Jan. 19.

Associated: Bitcoin can go $30K earlier than setting new bear market low — forecast

In a Twitter debate, analysts eyed a possible continued sport of catch-up between gold and Bitcoin, which researcher and knowledge analyst James V. Straten argued had been a “mirror picture” of one another in 2022.

“My guess BTC closes that hole quickly,” he stated whereas discussing the market implications of Federal Reserve coverage.

Straten added that BTC/USD had already “retraced the whole FTX collapse and approaching the top of the narrative for DCG,” referring to ongoing issues for crypto finance conglomerate, Digital Foreign money Group.

BTC/USD vs. XAU/USD 1-day line chart. Supply: TradingView

As Cointelegraph reported, expectations beforehand known as for a copycat transfer on Bitcoin after gold took an early lead in recovering from lows.

The views, ideas and opinions expressed listed below are the authors’ alone and don’t essentially replicate or symbolize the views and opinions of Cointelegraph.