The Bitcoin price has seen healthy value appreciation over the past week. Despite uncertainty across financial markets, investors appear a bit more confident. Although many facets favor a continuation, an immediate correction isn’t out of the question either.
Bitcoin Price Rejected At $21,000 Again
When crypto markets turn bullish, there is a lot of excitement among investors, speculators, and traders. Last year was terrible for all crypto prices, even if the industry hasn’t lost momentum in terms of technology and adoption. However, utility and price are two different factors, especially for Bitcoin and other assets. There isn’t always market rationale, and cryptocurrencies remain easier to suppress than other assets.
That said, the past week was rather spectacular for Bitcoin. More specifically, the Bitcoin price noted a 21.5% gain, allowing it to surpass $20,000. However, the push to $21,000 isn’t going as planned. The Bitcoin price approached and surpassed that level a few times, but always gets rejected. Not entirely surprising, as this asset traded at under $17,000 not too long ago. There’s no need to want too much too soon.
Unfortunately, it remains unclear if the BTC price can get over that hump. As traders reject $21,000, the bull run may halt. In addition, the $20,000 price level may not hold either, as support levels are found elsewhere. The Tweet below shows how much of the buying pressure has already been exhausted above $20,200. Scooping up 577k BTC is significant, but at up to $500 profit per BTC, it may turn into selling pressure too.
#Bitcoin appears to sit on top of two significant demand walls!
⭕️ One between $20,200 and $20,800, where 942,000 addresses bought 677,000 $BTC.
⭕️ And the other one between $19,000 and $19,600, where 1.33 million addresses bought 690,000 #BTC. pic.twitter.com/PJCynhtm2u
— Ali (@ali_charts) January 15, 2023
Furthermore, traders picked up a lot of BTC below $19,600. That seems a likelier support level for the Bitcoin price in the current scenario. The price has risen strongly and quickly, yet it cannot continue indefinitely. That said, most speculators and investors would hold the BTC acquired at these levels for the long term. If the bull run continues, the price could skyrocket to $28k, considered a significant resistance point.
Bullish Sentiment and Fear And Greed
Technical analysis is always a viable way to determine current market sentiment. One indicator to use is the Bitcoin Fear and Greed Index. It tracks overall sentiment regarding the Bitcoin price and where it may head next. Interestingly, the momentum favors a continuation of the uptrend. Things looked relatively bleak not that long ago, with a value of roughly “25”. A lower value means more fear and less reason to expect a higher Bitcoin price.
Today, the Index sits near “45”, which is interesting. It indicates more market confidence than before, but nothing is outspokenly bullish yet. That may confirm the current uptrend is temporary and will require a later continuation.
That said, the LunarCrush statistics show people have become more bullish on BTC in the past week. A 45.6% increase in bullish sentiment is interesting, and social volume across Twitter, Reddit, Medium, and YouTube has risen too.
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