Just days after a technical analyst suggested the Bitcoin BTC/USD chart is "beautifully bullish," Bitcoin surged beyond $42,000.
What Happened: Bitcoin rallied 5.6% beyond the $42,000 mark to end the week on a high. Technical analysts now see a move beyond $40,550 to trigger a rally to $43,000.
One analyst on X saw this as the most difficult day psychologically for many people, as they witnessed green days after so many red ones making them feel, "I missed it."
Liquidation in the past 24 hours stood at $43.35 million, with short liquidations accounting for the majority ($38.88 million) based on Coinglass data. Also, data from Greek Live reported a put-to-call ratio of 0.51 based on 94,000 Bitcoin options set to expire today, Jan.26. This is considered a bullish indicator for the asset.
Why It Matters: While Arthur Hayes forecasted a 30% correction, technical analysts hold the upper hand for now, with Bitcoin reversing some of its losses.
Cryptocurrency analyst Ali Martinez said the TD Sequential flashed a buy signal on the daily chart. He added, “An upward move past $40,550 may catalyze an upswing to $43,000.” He also cautioned the traders in his tweet:
The TD Sequential flashed a buy signal on the daily chart while #Bitcoin maintains its position above the 100SMA. An upward move past $40,550 may catalyze an upswing to $43,000.
— Ali (@ali_charts) January 26, 2024
However, monitor the 100SMA support level because a breach might lead #BTC to $33,300. pic.twitter.com/SBkuvkLQiO
Pentoshi tweeted, “The demand is very real and this all should be viewed as very bullish long term.”
Crypto analyst Michaël van de Poppe highlighted the total market cap of crypto, which bounced from a crucial area. He added, “It seems likely we'll continue to $2T in the coming period.”
The global crypto market cap currently stands at $1.62 trillion, up 4.2% in the past 24 hours.
What’s Next: Despite the optimism of some technical analysts, not everyone expects a full-on reversal.
Technical analyst CryptoCon said in his latest tweet, “With 12 other examples, the weekly RSI is due to head to the orange .382 support zone, with prices in the low 30k's.”
The analyst adds the data provided an accurate signal when the price was overheated and thinks it will do so again when Bitcoin is undervalued.
#Bitcoin is making a small rebound from its drop to $38,500, to now $42,000.
— CryptoCon (@CryptoCon_) January 26, 2024
But some people may be jumping the gun to say the bottom is in.
With 12 other examples, the weekly RSI is due to head to the orange .382 support zone, with prices in the low 30k's.
The most common… pic.twitter.com/ecGSxmnjBt
Meanwhile, Altcoin Sherpa tweeted, “I'm still thinking we head lower in the mid-term and am not opening any fresh positions here. Great moves for some altcoins the last few days but I think it's best to be cautious.”
Read Next: Bitcoin Halving Could Make 9 Of 11 Largest Public Miners Unprofitable: Analyst
Photo: Unsplash
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