(Kitco News) – The cryptocurrency market fell under pressure in early training on Wednesday and struggled to gain momentum until later in the afternoon when prices started to rise and Bitcoin bulls aim to break above resistance at $23,000.
Shares also faced a pullback as the market opened and spent the rest of the trading session climbing in an attempt to return to the day’s balance. As markets closed in the US, the S&P and Nasdaq managed to recover most of what had been lost, ending down 0.02% and 0.18% respectively, while the Dow Jones was able to climb into positive territory and ended the day up 0.03%.
Data from TradingView shows that the bears in Bitcoin (BTC) made several attempts to lower its price during trading on Wednesday, eventually dropping BTC to a daily low of $22,345 before the bulls managed to pull it down. put back above $22,800. An afternoon rally saw the top crypto hit a daily high of $23,829.
BTC/USD 4 hour chart. Source: Trading View
Kitco’s senior technical analyst Jim Wyckoff called the early morning pullback a “routine corrective pullback after this week hit a four-month high”, and suggested it had no significant impact on Bitcoin’s current outlook.
“BC bulls still have the strong overall short-term technical advantage amid a strong upward price trend in place on the daily bar chart,” Wyckoff said, which “suggests that a bigger rise in prices is likely in the near term.”
Tied range before climbing to $25,000
Market analyst Duo Nine, who posted the following tweet noting the potential for a pullback to $21,000 or limited trading between $22,000 and $23,000, provided additional insight into what could follow for bitcoin.
#Bitcoins the pennant has broken down. 👇
Let’s see if the price makes a lower low. If so, expect a retest of the 21k breakout level.
For now, it could also turn into a wide range between 22k and 23k.
— Duo Nine | discord.gg/ycc (@DU09BTC) January 25, 2023
The prospect of range-bound trading was also noted by Crypto market analyst Tony, who provided the following chart which highlights the possibility of a continuation of the uptrend around mid-February after a corrective wave.
that’s what i’m looking for #Bitcoins with a corrective wave now, followed by another step up to my $25,000 in total
Invalidation is if we started to break down from here pic.twitter.com/tzWxIKTTMW
— CryptoTony (@CryptoTony__) January 25, 2023
And a final look at how the current price action for Bitcoin compares to previous cycles was provided by crypto analyst Mustache, who noticed that one specific indicator is signaling that a bull market might be on the way. to start gaining momentum.
After such a long downtrend, this only happened in ’15, ’19 and ’20.
In 2015, there was a red herring, once before the start of bullfighting.
In ’19 and ’20 this immediately started a long upward trend.🎯 pic.twitter.com/VRO6MCVwFk
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) January 25, 2023
Select rising altcoins
The downward pressure in the crypto market pushed the majority of altcoins into the red for the day, except for a few notables who saw their prices rise.
Daily performance of the cryptocurrency market. Source: Coin360
The biggest gainer of the day was LCX (LCX), which climbed 41.56% to a daily high of $0.158, followed by a 41.02% gain for Aptos (APT) and a gain of 20.43% for Hooked Protocol (HOOK).
The overall cryptocurrency market capitalization now stands at $1.038 billion and Bitcoin’s dominance rate is 42.5%.
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.