A trader thinks that the best outcome for Bitcoin is to reach $25,000 before experiencing a correction.
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin’s price has gone up by 1% in a single hour, breaking through resistance.
However, despite its recent success, reaching $23,950 over the weekend, traders are not confident that it will continue to see gains in February.
January saw an increase of over 40% for Bitcoin, making it its best January since 2013. The trader, Crypto Tony, stated that reaching a high of $25,000 is the absolute best-case scenario for Bitcoin.
Crypto Tony predicts that February will be bearish for Bitcoin, with price targets of $21,400 and possibly even $19,000. He also mentioned the U.S. dollar, which reached two-week highs, affecting crypto markets since the U.S.
Dollar Index is usually inversely correlated with cryptocurrency. Another trader and analyst, Scott Melker, known as “The Wolf of All Streets,” paid attention to the weekly closing of the S&P 500, which closed above its 50-week moving average for the first time since April of last year.
Melker believes that this is an important factor to watch, especially with the Federal Open Market Committee meeting coming up and a potentially volatile week ahead. He advises watching the close on Friday.
Bitcoin Recalls the Build-Up to Record Highs
However, the formal analysis from the on-chain analytics firm Glassnode did not make any predictions for the coming month. In their latest weekly newsletter, “The Week On-Chain,” they emphasized the importance of January as the month that Bitcoin regained momentum.
They noted that Bitcoin’s markets saw the strongest monthly price increase since October 2021, driven by both high demand and a series of short squeezes.
The rally has brought much back into profitability and has resulted in a healthy contango in futures markets. They also observed that the initial outflow from exchanges, which followed FTX, has stabilized and is now balanced by incoming flows.