The performance of the world’s largest cryptocurrency by market capitalization continues to impress in January.
After finally recovering from the crash the crypto market went through following the bankruptcy of the exchange FTX, bitcoin is now showing signs of consolidation in the $20,000 zone.
As talked about previously, BTC reached that zone on January 13. The reason for that consolidation is the confirmation, after the most recent Consumer Price Index Report, that the United States Government is finally seeing signs that the year-long interest-raising policies are finally showing results.
The consequences of that can be seen in the charts for “riskier” assets like stock and crypto. Since the release of the report on January 13, bitcoin saw a 10% increase in its price.
Bitcoin Testing The $21,000 Zone
In the last 24 hours, bitcoin saw a modest increase of “only” 0.3%. However, the 24h trading volume reached a 2-month high, reaching $45 billion in one day.
That peak in volume explains why the asset saw a “slowdown” in its daily gains.
After consolidating around $20k, bitcoin tested the $21,000 margin for the first time since November 14. Today, January 16, bitcoin reached $21,284 around 11:35 AM, GMT time.
For most of the second half of 2022, bitcoin saw in the $21,000 zone as a resistance margin, while its bottom was around $19,000.
During that period, bitcoin mostly traded sideways. This means that the asset repeatedly bounced back and forth between those resistance/support margins.
The fact that BTC is finally back to test that zone in 2023 is remarkably good news for investors.
Differently from the last year, this time the market-leading cryptocurrency is reaching the zone in relatively better conditions. The fact that the immense negative pressure from the FED is finally starting to cease could give the digital asset a lot more “freedom” for testing new resistances with market optimism on its side.
