by 1. Bitcoin (BTC) recently hit a yearly high of $21,095, prompting analysts to speculate on where BTC price might go next.
2. The recent rally in Bitcoin is creating increased volume levels and higher social engagement and the Fear and Greed Index, a crypto-specific metric that measures sentiment, hit a monthly high.
3. Analysts believe BTC price needs to remain above the $21,000 support before the current bullish trend can be sustained.
Bitcoin, the world’s leading cryptocurrency, recently hit a yearly high of $21,095 on Jan. 13, leading analysts to speculate on where BTC price might go next. The recent rally in Bitcoin is creating increased volume levels and higher social engagement as investors’ sentiment about the market hit a monthly high, according to the Fear and Greed Index.
The Fear and Greed Index, a crypto-specific metric that measures sentiment using five weighted sources, shows that investors are feeling increasingly positive about the market. This positive sentiment is being driven by Bitcoin’s rally over the $20,000 level, which is a psychologically important level for investors.
Despite the strength of the recent rally, some analysts believe BTC price needs to remain above the $21,000 support before the current bullish trend can be sustained. Glassnode analysis suggests that “a renewed bullish trend that started on January 1st drove bitcoin prices to their current levels.” However, the trading volume of BTC remains a concern, as it has yet to recover from its pre-FTX levels.
Analysts and traders are now issuing their thoughts on where BTC price could head next. Many believe that if BTC price can stay above the $21,000 support, then there is potential for it to reach new all-time highs. Others believe that the current rally is just a “fakeout” and that BTC is likely to drop back down.
It remains to be seen where BTC will go next, but one thing is certain: investors and traders are watching the markets closely to see where the prices of Bitcoin will move. With the recent rally, it is clear that Bitcoin is gaining momentum and that investors and traders are increasingly bullish on the future of the cryptocurrency.
