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Sunday, March 19, 2023

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). Source: TradingView

Bitcoin value vary “nicely outlined”

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

The pair edged larger on the Wall Street open, in keeping with United States equities because the third buying and selling week of an explosive January drew to an finish.

Despite misgivings over the rally’s basic power, Bitcoin continued to keep away from important corrections, with alternate order e book evaluation revealing $23,000 as the subsequent huge resistance zone to crack.

“I view the lack of BTC liquidity below $18k and above $23k as a lack of sentiment for those levels at this time,” on-chain monitoring useful resource Material Indicators wrote in a part of commentary in regards to the Binance order e book setup.

“Nothing changes sentiment like price moving through support or resistance, but for now, the trading range is well defined.”

BTC/USD order e book knowledge (Binance). Source: Material Indicators/ Twitter

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

In phrases of short-term targets, common 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 still believe that we will get there, and maybe we are already on our way over there,” he stated in a YouTube replace on the day.

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

Analyst: Bitcoin ought to “shut hole” with gold

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

Related: 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 image” of one another in 2022.

“My bet BTC closes that gap soon,” he stated whereas discussing the market implications of Federal Reserve coverage.

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

BTC/USD vs. XAU/USD 1-day line chart. Source: 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 here are the authors’ alone and don’t essentially replicate or characterize the views and opinions of Cointelegraph.