Bitcoin Poised For Another Attack On $24,000 As Trader Predicts “Bear February”

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bitcoin (BTC) surged above $23,000 at Wall Street’s open on Jan. 31 as markets braced for a macro recalculation.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View

Trader: $25,000 “best case” for BTC/USD

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD gaining around 1% in a single hourly candle before trading began, overcoming resistance in place overnight.

With hours until the monthly close, the pair remained around $800 below its weekend highswhich at $23,950 marked Bitcoin’s strongest performance since mid-2022.

Inspecting the status quo, however, traders were unconvinced that the biggest cryptocurrency would produce further gains in February.

January had produced a rise of more than 40%, making it the best first month of the year for Bitcoin since 2013.

“Another high to $25,000 is the absolute best case for me on Bitcoin,” popular Crypto trader Tony Told Daily Twitter followers.

He added that he expects a “bearish February” with price targets of $21,400 and even $19,000.

BTC/USD annotated chart. Source: Crypto Tony/Twitter

Crypto Tony also referenced the US Dollar, which hit two-week highs on the day to continue a four-day uptrend. The US Dollar Index (DXY) is traditionally inversely correlated to crypto markets.

On that note, fellow trader and analyst Scott Melker, known as “The Wolf of All Streets,” focused on the weekly close at the S&P 500 candle after the index closed above its 50-week moving average for the first time since April last year. .

“SPY closed a weekly candle above the 50 MA for the first time since April. Currently testing it for support, with the FOMC coming tomorrow and a volatile week likely. Watch the close on Friday,” he said. tweeted day.

US Dollar Index (DXY) One-day candle chart. Source: Trading View

Bitcoin Talks Race to All-Time Highs

Formal analysis by on-chain analytics firm Glassnode nonetheless dodged forecasts for next month.

Related: Best month of January since 2013? 5 things to know about Bitcoin this week

In the latest edition of its weekly newsletter, “The chain week“, analysts focused on the importance of January as the month when Bitcoin came back to life.

“As we approach the end of January, Bitcoin markets recorded the strongest monthly price performance since October 2021, fueled by both historical spot demand and a sequence of short squeezes,” he said. it sums.

“This rally brought much of the market back to profitability and allowed the futures markets to trade at a healthy contango. calmed down to neutral and is now balanced by newly motivated entries.”

Like Cointelegraph reported earlier, various sources believe that Bitcoin’s rally is already coming to an end.

The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.