Bitcoin in a Rising Channel, BTC Must Clear $23.3k

Bitcoin Drops 7%, BTC Bears Targeting A Retest of $25k?
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Bitcoin prices are stagnant at spot rates, consolidating inside a tight $1.5k range with caps at $22.3k on the lower end and $23.3k and $23.8k area, covered by bulls.

The result is a bull flag where it appears traders have been taking their profits. For the uptrend to be validated, there must be a sharp, high-volume thrust above the current range.

In turn, this would signal the presence of buyers targeting $25k or $30k in the near term. Even so, traders should proceed with caution.

The uptrend appears overstretched, and there could be a deserved retracement from spot levels, allowing buyers to gather steam below $22k.

The Revival

Analysts remain optimistic, given the recent revival and uptrend validation. Even though prices are in tight trade ranges, buyers have remarkably reversed losses of early November.

The FTX collapse massively impacted the market, forcing coin liquidation. Sam Bankman-Fried’s empire sunk with billions of clients’ funds, a disaster and reputational damage for the sphere.

Since mid-January, sentiment has shifted. Consequently, in their report, Pantera Capital says Bitcoin is back to their 13-year bull cycle, where it more than doubled its valuation.

They cite the increasing adoption of Bitcoin and crypto as drivers and favorable macroeconomic conditions that may see BTC edge higher in the coming weeks and months. Additionally, the venture capital points out the adoption from institutional investors who view exposure to BTC as a means of diversifying their portfolios.

Bitcoin Price Analysis


BTC prices are all over the place, reading from the price chart in the daily.

As it is, the coin is confined inside a rising channel, above $22k but capped to the upside. There are hints of strength following January 25 upsides.

However, there must be a sharp push above the resistance line at $23.3k and $23.8k, above January 25 high for uptrend validation. This, in turn, will confirm gains of January 20, possibly triggering another wave of bulls that could drive the coin to $25k or better.

Conversely, bears may flow in, correcting the leg up. In that case, traders should watch out for how prices react at $22.3k. Losses below this week’s low may see BTC drop to $21.5k in a retest of November 2022 highs.

Technical charts courtesy of Trading View.

Disclaimer: Opinions expressed are not investment advice. Do your research.

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