Of the Bitcoin-Price is finally posting some gains but seems weak compared to other crypto assets. The macro environment is waking up and shaking things up across asset classes.
As of this writing, bitcoin price is trading at $16,800 with sideways movement for the last 24 hours. In the crypto top 10, BTC lags behind EthereumBinance Coin and Cardano. This cryptocurrencies react positively to the beginning of 2023.
BTC price is moving sideways on the daily chart. Source: BTCUSDT trade view
Bitcoin price is aiming for higher levels
Institutions are returning to trading and allocating capital in gold and other assets, according to a recent report by trading desk QCP Capital. The precious metal has rallied 15% over the past 60 days and continues to trend higher.
The trading table believes that institutions are allocating to “alternative assets” or stores of value. Bitcoin price is yet to benefit from this trend, but the crypto market is seeing some gains. Specifically, the non-fungible token space.
This sector is coming back to life after months of declining activity. popular NFTCollections made 2x to 3x gains at the end of 2022 and are expected to continue the trend. QCP Capital noted Bitcoin and Ethereum price action by :
(…) Similar to gold and NFTs, BTC and ETH are partially catching up at the beginning of the year. Despite the mini rally, BTC is still trading in an extremely tight falling wedge – with 18,000 being the key breakout level to the upside.
If bitcoin price can rally $18,000 and trend higher on institutional allocation to alternative assets, the cryptocurrency could reclaim higher levels. The trading table points to $28,000 as a critical level to watch.
This level is the clipping of the “head and shoulders” pattern that BTC has been forming for the past two years. In addition, $28,000 will go into the 61.8 percent Fibonacci-Retracement level, meaning many players will be keeping an eye on it.
$28,000 for BTC pouring into key levels. Source: QCP Capital via Twitter
Which could act as a hindrance for bitcoin
In the short term, bitcoin price is looking at its current levels Resistance. Analyst Caleb Franzen claims that BTC is likely to continue to see resistance around these prices and higher.
BTC Price Faces Major Resistance Source: Caleb Franzen via Twitter
In 2022, the $17,000 levels acted as critical support. Once lost, these levels turned into significant resistance, likely causing friction for the cryptocurrency. As the analyst pointed out, Bitcoin has already been rejected from these levels to try to rally above $18,000. Franzen said:
Bitcoin is crucially in a potential resistance area. Even if the price manages to break this diagonal resistance channel, we cannot ignore the overhead resistance from the former 2022 support area. We’ve been rejected before…
Source: Crypto News Deutsch