bitcoin (BTC) rallied towards fresh multi-month highs on January 20, as analysis predicted a new trading range above $18,000.
Bitcoin price range "well defined"
Data of Cointelegraph Pro Markets Y TradingView showed tests of BTC/USD but holding the support at $21,000.
The pair rose at the open on Wall Street, in line with US stocks as the third trading week of an explosive January came to a close.
Despite doubts about the fundamental strength of the rally, Bitcoin continued to avoid significant corrections, with analysis of the exchange order book revealing $23,000 as the next major resistance zone to break.
โI view BTC's illiquidity below $18k and above $23k as a lack of sentiment for those levels right now,โ Material On-Chain Monitoring Resource Indicators wrote in part of the comment on the Binance order book setup.
"Nothing changes sentiment like price moving through support or resistance, but for now, the trading range is well defined."
An accompanying chart also revealed significant supply support just above the psychologically significant $20,000 mark.
In terms of near-term targets, popular Crypto trader and analyst Ed was expecting a trip to $21,500 before a move with a downside target of $19,800.
"I still think we'll get there, and maybe we're already on our way there," he said in a youtube update up to date.
The area around $21,400 was equally important to fellow trader CJ, who saying Twitter followers that this would be a suitable place to "tag longs".
Analyst: Bitcoin should "close the gap" with gold
Walking away, others focused on continued impressive moves in safe-haven gold, which had hit a new nine-month high on Jan. 19.
Related: Bitcoin May Exceed $30,000 Before Setting a New Bear Market Low: Forecast
in a debate on twitterAnalysts noted a possible continued rally play between gold and Bitcoin, which researcher and data analyst James V. Straten argued had been a "mirror image" of each other in 2022.
โMy BTC bet closes that gap soon,โ he said. saying while discussing the market implications of Federal Reserve policy.
Straten added that BTC/USD had already โwent through the entire FTX crash and was nearing the end of the DCG narrative,โ referring to ongoing problems for crypto-finance conglomerate, Digital Currency Group.
Like Cointelegraph reportedexpectations previously called for a copycat move in Bitcoin after gold took the lead in rallying from the lows.
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.
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