Bitcoin hits $23k mark, analysts advise bulls to target $18,600–19,500

Cryptocurrency prices continued their upward surge this week. The rally, which began on January 9, 2023, has now entered its third week and is showing no signs of abating.

As investors eagerly awaited corporate earnings announcements, the stock market soared to new heights. 

The S&P, Dow, and Nasdaq all ended in the green, with respective increases of 1.19%, 0.76%, and 2.01% for January 23, 2023.

The Bitcoin (BTC) bulls fiercely defended their value at $22,600 throughout the morning hours, according to TradingView. Then launched a fierce counterattack in the afternoon, driving the cryptocurrency’s price to a daily pinnacle of $23,18 before taking a strategic retreat to the safety of support near $23,000.

Insights and analysis by Kitco and Eight Global

Kitco’s senior technical analyst Jim Wyckoff confirms Bitcoin’s steady climb to a new four-month high.

“The bulls of Bitcoin now hold a commanding position, with a steep uptrend firmly established on the daily chart. This is a clear indication that further gains are likely to come in the near future.” Wyckoff.

Bitcoin had been in a state of consolidation for five days before suddenly surging higher. 

Despite the new high in price, the RSI (Relative Strength Index) has not followed suit and is showing signs of a negative divergence. 

“The area between $22,400 to $22,500 serves as the initial level of support beneath the tumultuous waves of current price action,” say experts at Eight Global.

Approach with caution

Eight Global unveils a trading strategy for those who thrive in the fast-paced world of crypto, targeting $24,000 with a key area of $22,400–22,500 during consolidation and a stop loss at $22,200.

“…keep an eye on the daily candles and be ready for a quick liquidity grab before the potential correction, despite the developing negative divergence.”

A defensive approach would involve scouting for opportunities to take long positions within the range of $21,300–21,700, with the initial objective of reaching the heights of $23,500–24,000 in the event of a deeper correction.

However, if the crucial defense line of $21,300 falls, analysts at Eight Global suggest shifting tactics and launching a counter-offensive by seeking short positions during a bearish retest of the $20,800–21,300 area. The objective of this maneuver would be to target the 0.236 fib level (~$19,500) and the $18,600 area.

Notable altcoin gains

The altcoin market continued its upward trajectory on January 23, 2023, with almost all of the top 200 tokens experiencing gains for the day. Notable altcoins with impressive gains include:

• Threshold (T), whose value surged by 33.7%.
• Keep Network (KEEP) had a 32.07% increase.
• Ribbon Finance (RBN) hit a high with a 25.41% increase.
• Hooked Protocol (HOOK) with a 25.29% gain.

The grand total of the cryptocurrency market cap now stands at an impressive $1.05 trillion, with Bitcoin taking the lead with a dominance rate of 42.1%.