Bitcoin ready for another attack on $24,000 as traders predict a ‘bearish February’

Bitcoin (BTC) climbs above $23,000 heading into Wall Street’s opening on Jan. 31, as the market prepares for a new macroeconomic reckoning.

Traders: $25,000 “best case” in BTC/USD

According to data from Cointelegraph Markets Pro and TradingView, BTC/USD rose around 1% on the hourly chart before trading opened, overcoming overnight resistance.

With only hours to go until the monthly close, the pair fell about $800 below the weekend high of $23,950, marking Bitcoin’s strongest performance since mid-2022.

However, traders who surveyed the current situation weren’t convinced that the biggest cryptocurrency would generate more profits in February.

January generated over 40% upside, making it Bitcoin’s best first month since 2013.

“Another high to $25,000 is the absolute best case for Bitcoin for me,” says popular trader Crypto Tony Said Twitter followers of the day.

He added that he expects a “bearish February” with price targets of $21,400 and even $19,000.

Crypto Tony also referenced the US dollar, which surged to a two-week high on the day to continue its four-day uptrend. The US Dollar Index (DXY) has traditionally been inversely correlated with the cryptocurrency market.

In that regard, trader and analyst Scott Melker, known as “the wolf of every city,” said that every week after the S&P 500 index closed above its 50-week moving average for the first time since April last year. focused on the candle trade. .

“SPY has closed the weekly candle above the 50 MA for the first time since April. Now the FOMC is coming tomorrow and it could be a volatile week and we are testing it as support. Look,’ he said. murmured On that day.

Bitcoin sparks a rise to all-time highs

Nevertheless, a formal analysis by on-chain analytics firm Glassnode avoided predicting next month.

RELATED: Best January Since 2013? 5 Things You Need To Know About Bitcoin This Week

In the latest edition of its weekly newsletter, The Week On-Chain, analysts highlighted the importance of January as the month of Bitcoin’s resurgence.

“As the end of January approaches, the Bitcoin market sees its strongest monthly price performance since October 2021, fueled by record spot demand and a series of short squeezes,” it concludes.

“This rally helped much of the market recoup gains, leaving the futures market to trade in healthy contango. It also saw the initial impulse of exchange outflows settle into neutrality in the aftermath of FTX, and now Note also that is balanced by newly motivated inflows.”

As Cointelegraph previously reported, various sources believe that Bitcoin’s rally is already coming to an end.

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