Bitcoin Consolidates at $23,000 – What’s Next? “The elimination of bears will begin”

There will be a mass liquidation of short positions on bitcoin if it overcomes the current resistance.

After an impressive rise of more than 40% in January, Bitcoin continues to consolidate in the $23,000 area. According to the cryptocurrency screener Cryptovizorwhich determines the market price of BTC/USD based on the results of trading on the largest spot exchanges, the current maximum price of the asset on January 21 corresponds to $23,467.

12 hour bitcoin chart. Source: Cryptovizor

Market players are divided as to what comes next, with many expecting a sharp correction and fresh lows at or below $15,000 after more than a year of bear market.

Others believe that the rally will continue and expect to see Bitcoin at $30,000 soon.

FROM points of view According to Philip Swift, co-founder of trading platform Decentrader, the $25,000 area is critical right now. He expects a “massive bear liquidation” to begin above this level.

In addition, this area corresponds to the 200-week moving average (200WMA), above which Bitcoin has not been able to rise since mid-2022. The 200WMA is currently at $24,750.

Swift wrote:

A significant amount of liquidity is in the $24,700-$25,900 range, which is in line with the 200WMA and the area just above it.

Analysis liquidity chart shows that leveraged short liquidation will begin as soon as the price of bitcoin exceeds $23,400 – this is where the current rally has run into problems.

Bitcoin liquidity chart. Source: Decentrader

“This level continues to act as resistance,” commented trader Rekt Capital posted this post and noted that the last weekly Bitcoin candle closed lower.

To move above BTC, it is necessary to return ~$23,400 as support, otherwise a lower high will be formed compared to the summer of 2022.

1 week bitcoin chart. Analytics: Rekt Capital

Such a scenario would mean that Bitcoin failed to overcome the August local maximum, and therefore, the current growth is just a brief respite in the price fall, which has been going on since November 2021 and reached 80% on January 7.

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