Bitcoin price is mostly moving sideways near the $23K level after hitting a 5-month high of $23,282 recently. After a 40% rally in January, traders speculate whether the Bitcoin price will continue to rise and hit $25K or fall to $21K. Popular analyst Michael van de Poppe believes the rally is likely over as Bitcoin couldn’t break through a crucial resistance at $23.1K.
Bitcoin Price Risks Falling to $21K?
Bitcoin continues to move above the $23K level amid fresh investor optimism, but fails to hold the level due to crucial resistance at $23.1K.
Whether the current BTC price movement can bring a bullish market is still a concern. Bitcoin price keeps moving upwards and even crossed its 200-DMA, making a 40% rally in January. However, it still has no significant pullback. Therefore, investors are waiting for the pullback in BTC price.
The Bitcoin price would likely drop to $21k rather than $25K, the next positive level suggested by analysts, as traders’ sentiment is more likely bearish in the short term.
Crypto analyst Michael van de Poppe in a tweet on January 24 said Bitcoin price is facing difficulty in breaking above a crucial resistance at $23.1K. Thus, if Bitcoin continues to make lower highs, then probably test and sweep around $22.3K before continuation is more likely.
In addition, it will offer a good buying opportunity for investors who failed to grab Bitcoin at lower levels. In early January, Michael van de Poppe predicted a massive rally in the BTC price, which will subside before the FOMC meeting.
Why Bitcoin Rally Is Likely Over
CoinGape published a recent analysis citing reasons why the Bitcoin price rally is likely over. European Central Bank plans to deliver 50 bps interest rate hikes in February and March.
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