Bitcoin (BTC) starts the last week of January in fine form after sealing its highest weekly close in five months.
Despite opposition, the largest cryptocurrency is holding on to its newfound strength and continues to surprise market participants.
This is no mean feat — market sentiment has plenty to spook it and initiate a rethink among investors. Macro conditions remain uncertain, while within Bitcoin, research has highlighted whales on exchanges potentially moving prices artificially with huge amounts of liquidity.
Nonetheless, Bitcoin has seen its most impressive gains percentage-wise in over a year, and hopes remain that the good times will endure. What could that depend on?
Cointelegraph takes a look at some of the major factors to keep in mind as a January unlike any other draws to a close.
Bitcoin analysts bank on “continuation” to come
It is no secret that Bitcoin is facing its fair share of suspicion as it delivers 40% gains over just three weekly candles.
Demands for a major correction and continuation of the bear market have long been public, and some of the more conservative trading voices insist that macro lows are not yet in.
That inflection point has still not materialized, however. At its latest weekly candle close, BTC/USD traded at just above $22,700, marking its best performance since last summer.
Thereafter, the pair consolidated into the start of Monday, likewise retaining ground recovered over the week.
“Lows swept, juicy highs above, would be the perfect time to put in a nice running flat before continuation up,” trader Credible Crypto summarized about the short-term outlook.
Credible Crypto’s is characteristic of some of the more bullish takes on the market, less concerned by the idea that the whole move may simply be a relief rally within a broader bearish structure.
“Total market capitalization broke through the 200-Day EMA,” a similarly optimistic Michaël van de Poppe, Cointelegraph contributor and CEO of trading firm Eight, added at the weekend, referring to exponential moving averages.
“Good signs for crypto, as continuation seems likely. In between continuation to $25K or a correction to $19.5K. To continue -> hold above 200-Day EMA and break resistance. 200-Day EMA potential entry point.”
More conservative appraisals of the…