Bitcoin (BTC) continues to work to break the $17,000 mark on January 4, holding firm in an “extremely tight” trading zone.
$17,000 made “possible” by CPI printing
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair hit $16,906 on Bitstamp, up $300 from the previous day’s low.
The largest cryptocurrency in the market benefited from a positive start to the year on Wall Street, giving a broader impetus to crypto-asset groups that until then were mostly sideways price moves.
Filbfilb, co-founder of trading group DecenTrader, began by saying, “Bitcoin traded in correspondence with the ancient markets yesterday.” summary of recent events.
Analyzing the 12-hour chart, he argued that the 50-day moving average (MA) needs to hold in favor of the bulls, with immediate support and resistance levels at $15,500 and $18,000 respectively.
If favorable, the US Consumer Price Index (CPI) release scheduled for next week could give BTC price action the impetus it needs to maintain momentum.
Filbfilb added: “Bitcoin needs to hold the 50 DMA and break last week’s high, but a flight seems possible based on the CPI data”:
“We are currently in the upper band of last week’s price action.”
As Cointelegraph reported, other analysts predict that there will be enough momentum for Bitcoin to follow in the footsteps of stocks and gold in early 2023.
The trading company, QCP Capital, explained that the latter benefited from the “beginning of the year allocation in alternative assets.”
XAU/USD is up 15% over the past two months, he wrote in a market update sent to subscribers of his Telegram channel, as January has historically been its best month of the year.
“Despite the mini rally, Bitcoin is still trading in a very tight falling wedge – 18k being the key breakout level to the top,” he continued, echoing Phillipp:
“In the medium term, the 28k looks increasingly important – such as the shoulder neckline, head and shoulder and the 61.8% Fibonacci retracement level from the low of $3858 in 2020 to the high of $69k in 2021.”
Analysis believes in $1,000 in Ethereum
Meanwhile, the most confident performers seemed ready to welcome Ether (ETH). Strong support levels provide the bulls with a much needed relief in the event of a further downturn in the market.
“ETH continues to look more bullish than Bitcoin, although it too is still trading within a consolidation pattern,” QCP wrote.
The top of the triangle comes in at 1400 but the main resistance area is between 1700 and 2000 at the top. On the downside, we expect 1000-1100 to be a very decent support.”
ETH/USD is trading at $1,250 for the first time since December 16 at the time of writing. Its daily candle on January 4th has so far closed for a gain of 3%.
When analyzing when the bottom of the cryptocurrency market might come, QCP said that traders should be prepared to wait for several more months to come.
“We only expect this to happen in October and November of this year, but we remain open to markets bottoming out before then,” he concluded.
The views, ideas and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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