bitcoin (BTC) refused to give up earnings at the Wall Street open on January 23 as US stocks opened higher.
Dollar Falls as Risk Assets Reject Pullback
Data of Cointelegraph Pro Markets Y TradingView it showed that BTC/USD was still hovering around $22,800 at the time of writing.
The pair managed to hold on to its trading range over the weekend, with a local low of $22,315 allowing bulls to avoid a major setback.
Mood remained upbeat among risk assets on the day, with the S&P 500 rising 1.3% and the Nasdaq Composite Index trading 2% higher.
Gold also disappointed those expecting a pullback after weeks of impressive performance, something analyst Alisdair McLeod blamed on classic supply-and-demand principles.
โAttempts to push gold back continue to fail,โ he said. commented on the XAU/USD daily chart.
โWhile technical analysts are signaling that a correction is due, they seem unaware that central banks are buying every ounce they can get their hands on.โ
With that, an already declining US dollar index (DXY) managed only a modest rally at the open before returning to downtrend, hovering around 102 at time of writing.
Among Bitcoin analysts, the jury is out on whether the current rally really marked a turnaround after more than a year of bear market.
โThere are signs that this could be the start of the bull, and there are also signs that it is a bear market rally. Until I see the confirmations, I'm focused on the data that matters, so I'll know if a potential breakout is a justifiable move or more likely to be a fake,โ Keith Alan, co-founder of on-chain data resource Material. Indicators, summarized.
Alan went on to point out that a particular macro trigger still needed to be entered to call bassists for time.
โBased on the economic data we have seen so far, the upward trend in unemployment, which has historically bottomed out, is still missing,โ he wrote.
"Sure, maybe 'this time is different', but I'm looking at full candles above the 200-week moving average to consider it a confirmed breakout."
Alan was referring to Bitcoin's 200-week moving average, a key trend line that Bitcoin has yet to recover after losing support late last year.
Bitcoin Hodlers Resist the Temptation to Sell
With Bitcoin rising 40% in January, another point of concern centered on the temptation to take profit.
Related: BTC Metrics Come Out Of Capitulation: 5 Things To Know About Bitcoin This Week
In the latest issue of his weekly newsletter, "the week in chainHowever, research firm Glassnode noted that long-term holders remained steadfast in their determination not to exit the market, even after more than a year of losses.
"Cohort behavior analysis shows that short-term holders and miners have been motivated by the opportunity to liquidate a portion of their holdings. Conversely, supply from long-term holders continues to grow, which it can be argued that it is a sign of strength and conviction in this cohort," part of their conclusion read.
"Given the effect of long-term holders on the macro trend, watching their spending is probably a key set of tools to track in the coming weeks."
Long-term holders are defined as entities that hold currencies for at least 155 days.
The views, thoughts and opinions expressed here are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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