Bitcoin price is mostly moving sideways near the $23K level after hitting a 5-month high of $23,282 recently. After a 40% rally in January, traders speculate whether the Bitcoin price will continue to rise and hit $25K or fall to $21K. Popular analyst Michael van de Poppe believes the rally is likely over as Bitcoin couldn’t break through a crucial resistance at $23.1K.
Bitcoin Price Risks Falling to $21K?
Bitcoin continues to move above the $23K level amid fresh investor optimism, but fails to hold the level due to crucial resistance at $23.1K.
Whether the current BTC price movement can bring a bullish market is still a concern. Bitcoin price keeps moving upwards and even crossed its 200-DMA, making a 40% rally in January. However, it still has no significant pullback. Therefore, investors are waiting for the pullback in BTC price.
The Bitcoin price would likely drop to $21k rather than $25K, the next positive level suggested by analysts, as traders’ sentiment is more likely bearish in the short term.
Crypto analyst Michael van de Poppe in a tweet on January 24 said Bitcoin price is facing difficulty in breaking above a crucial resistance at $23.1K. Thus, if Bitcoin continues to make lower highs, then probably test and sweep around $22.3K before continuation is more likely.
In addition, it will offer a good buying opportunity for investors who failed to grab Bitcoin at lower levels. In early January, Michael van de Poppe predicted a massive rally in the BTC price, which will subside before the FOMC meeting.
Why Bitcoin Rally Is Likely Over
CoinGape published a recent analysis citing reasons why the Bitcoin price rally is likely over. European Central Bank plans to deliver 50 bps interest rate hikes in February and March.
The U.S. Federal Reserve is more likely to announce a 50 bps rate hike on February 1, as per economists. However, as per CME FedWatch Tool, the probability of a 25 bps rate hike is 99%.
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