ledgernoise.com
Daily Crypto News

Breaking: Bitcoin rallies back above $20,000!


  • Bitcoin price has risen back to $20,000
  • The bulls have been up 20% since the start of the year.
  • BTC could rally toward $25,000 if market conditions persist.

Bitcoin price has stunned the market, rallying by 20% since January 1. The recent uptrend move is now going on its seventh consecutive bullish day in a row. 

Bitcoin price is taking off

Bitcoin price currently auctions at $20,250 as the peer-to-peer digital currency is making no hesitation to challenge the resistance levels above. January 13’s daily candlestick close above the descending trendline that acted as resistance throughout the fall is a strong gesture of bullish confidence.

The Relative Strength Index (RSI), an indicator used to assess the force of a market move by comparing previous swing points, shows the current uptrend rally breaching overbought territory. BTC has been notoriously known for trending in overbought conditions throughout the 2020-2021 bull run between 6k and 60K. Thus, FOMO (fear of missing out) is also a key component of the uptrend and likely to be a driving force in the days to come. 

On January 5, the 8-day exponential moving average crossed over the 21-day simple moving average at $16,655, a shorter buy signal for a conventional trade idea targeting December 14’s swing high at $18,373.  No one at the time thought the signal would be the catalyst of the current 20% rally. Nonetheless, the catalyst point could be an invalidation marker of the current uptrend rally. Bitcoin price has the potential to rally toward the recently breached trendline’s origin point at $25,200. A tag of the level would be a 25% rally from Bitcoin’s current market value.

tm/btc.1/13/22

BTC/USDT 1-Day Chart

Traders should remain focused on risk management in this highly volatile trading environment. A breach of the rallies origin point would void BTC’s bullish potential and set up a possible retest-the-lows scenario targeting the 2022 low at $15,476. The BTC price would decline by 25% if the bears were successful. 

 



Read More: Breaking: Bitcoin rallies back above $20,000!

Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. NewsOfBitcoin.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.