Investor: BTC/USD “best case” is $25,000.
Cointelegraph Markets Pro and TradingView data showed that Bitcoin/U.S. Dollar (BTC/USD) gained around 1% in a single hourly candle prior to the start of trading, breaking through overnight resistance.
Hours before the end of the month, the pair was still around $800 below its weekend highs. The $23,950 high on Sunday was Bitcoin’s best performance since the middle of 2022.
Traders were sceptical that the biggest cryptocurrency would produce further gains in February after looking at the current market conditions.
With gains of over 40%, Bitcoin’s first month of the year in 2019 was the best since January 2013.
Popular trader Crypto Tony tweeted that “another high up to $25,000 is the absolute best case for me on Bitcoin” that day.
He continued by saying that he anticipated a “bearish February,” with price projections as low as $21,400.
Crypto Tony also brought up the strength of the American dollar, which hit a two-week high that day and has now risen for four consecutive days. Markets for cryptocurrencies tend to move in the opposite direction of the U.S. Dollar Index (DXY).
After the S&P 500 index closed above its 50-week moving average for the first time since April of last year, fellow trader and analyst Scott Melker, aka “The Wolf Of All Streets,” focused on the weekly candle close of the index.
For the first time since April, SPY ended a weekly candle above the 50 MA. With the FOMC meeting starting tomorrow and a potentially turbulent week ahead, it’s being tested as a potential support level right now. Take note of Friday’s trading results, he tweeted that day.
Bitcoin’s history of soaring prices brings to mind a period of unprecedented growth.
However, Glassnode, a company that specialises in on-chain analytics, avoided making any forecasts for the upcoming month in its formal analysis.
The latest issue of “The Week On-Chain” weekly newsletter highlighted January as the month that Bitcoin came back to life, with analysts focusing on its significance.
Bitcoin markets have seen the strongest monthly price performance since October 2021, it summarised, thanks to both historic spot demand and a sequence of short squeezes.
Futures markets are trading at a healthy contango as a result of this rally, which has put a large portion of the market back in the black. We also see that the initial surge of currency outflows that followed FTX has subsided to a steady state, with inflows of new motivation serving to maintain the current equilibrium.
Earlier today, Cointelegraph reported that multiple sources believe Bitcoin’s recent rally is nearing its end.