• Bitcoin rallied hard throughout January and has posted gains of 44.3% from the swing low to the swing high of January.
• A bullish breaker from September has been defended so far and the next level of resistance lies at the range highs of $24.3k.
• Invalidation of the bullish idea would be a daily session close below $21.6k.
The month of January saw Bitcoin experience a significant rally, with the cryptocurrency gaining 44.3% from the swing low to the swing high of the month. This was a pleasant surprise for many investors, especially in light of the bearish news that has been circulating in recent months. The bullish break from September has been defended so far, and the next level of resistance lies at the range highs of $24.3k. This area was last tested in mid-August. A successful break of this level would likely target the $25k mark, with further resistance levels at $26k, $26.7k, and the $28k region.
The bears will be looking to invalidate the bullish momentum by closing the daily session below $21.6k. If this happens, then the price action of the past few days will be seen as a deviation, and a reversal towards $19k could commence. However, as things stand, this scenario is unlikely. The RSI is showing strong bullish momentum, and the OBV is in an uptrend, which further confirms the bullish bias.
It will be interesting to see how far the bulls can push Bitcoin in the coming weeks. With the key resistance levels mentioned above, and the overall strength of the market, it is not out of the question that Bitcoin could achieve some impressive gains. However, investors should remember to exercise caution and adhere to their risk management strategies when entering the market.