Bitcoin (BTC) continued to work towards breaking through $17,000 on Jan. 4 as an “extremely tight” trading zone held.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
$17,000 “possible” thanks to CPI printing
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hit $16,906 on Bitstamp, $300 higher than the previous day’s low.
The largest cryptocurrency had benefited from a positive start to the year on Wall Street, giving a broader boost to previously flat crypto assets.
“Bitcoin trading old markets yesterday,” Filbfilb, co-founder of trading suite Decentrader, began a summary of recent events by noting.
Analyzing the 12-hour chart, he argued that the 50-day moving average (MA) must hold for bulls, with immediate support and resistance levels at $15,500 and $18,000 respectively.
The release of the Consumer Price Index (CPI) for the United States next week, if favorable, could give BTC price action the catalyst it needs.
“Bitcoin needs to hold the 50 DMA and break last week’s high, but a trip there seems possible when it comes to CPI data,” added Filbfilb.
“Right now we’re at the top of last week’s price action.”
Annotated BTC/USD chart. Source: Filbfilb/Twitter
As Cointelegraph reported, others had hoped there would be enough momentum for Bitcoin to follow in the footsteps of stocks and gold by early 2023.
The latter, trading firm QCP Capital explained on the day, was due to an “allocation to alternative assets earlier in the year”.
XAU/USD is up 15% over the past two months, said a market update sent to Telegram channel subscribers, with January being the best month of the year historically.
“Despite the mini-rally, BTC is still trading in an extremely tight falling wedge – with 18,000 being the key breakout level to the upside,” it continued, echoing Filbfilb.
“Mid-term, 28,000 appears to be gaining in importance – as a head and shoulders cut and 61.8% Fibonacci retracement level from 2020 low of $3,858 to 2021 high of $69,000.”
Annotated BTC/USD chart. Source: QCP Capital
Analysis trusts $1,000 for Ethereum
Ethereu (ETH), meanwhile, was looking more optimistic, with solid support levels giving the bulls some much-needed consolation in the event of another market downturn.
Related: 3 Reasons It Could Be A Tough Week For Bitcoin, Ethereum, And Altcoins
“ETH continues to look significantly more bullish than BTC, although it too is still trading within a consolidation pattern,” QCP wrote.
“The top of the triangle is at 1,400 but the major resistance zone is between 1,700 and 2,000 on the upside. On the other hand, we expect 1,000-1,100 to be very decent support.”
Annotated ETH/USD chart. Source: QCP Capital
ETH/USD is trading at $1,250 for the first time since December 16 at the time of writing, its daily candle from January 4 sealing 3% gains so far.
Still, when analyzing when the crypto market bottom might come, QCP was prepared to lie in wait for many months.
ETH/USD 1-day candlestick chart (Binance). Source: TradingView
“We anticipate that this could happen again only in October/November this year, but remain open to markets bottoming out earlier,” she concluded.
The views, thoughts, and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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