Originally published on: January 13, 2022
Bitcoin surged to $44,000 for the second time on Jan. 12, triggering a debate among traders about the future direction of the cryptocurrency. Some argue that the price has hit bottom, while others remain skeptical.
According to data from Cointelegraph Markets Pro and TradingView, $44,000 is now acting as a key resistance level, with expectations that $46,000 could be the next target. Despite positive momentum following US inflation data, traders are divided on whether Bitcoin’s current rally is sustainable.
One Twitter account, Material Indicators, believes that Bitcoin is showing signs of being overbought, cautioning traders to “de-risk” amid key resistance levels. On the other hand, some see an opportunity for a short squeeze that could drive prices higher.
Crypto Ed, a popular trader, remains optimistic about Bitcoin’s prospects, predicting a continuation of the bullish trend. He suggests that a higher low formation could pave the way for a more sustainable recovery.
While funding rates across exchanges remain neutral to negative, Bitcoin’s price continues to consolidate around $44,000. Buyers are stepping in to prevent any significant pullbacks, indicating underlying strength in the market.
As the debate over Bitcoin’s price direction intensifies, traders are advised to stay informed and adapt their strategies accordingly. For the latest updates and analysis on the cryptocurrency market, subscribe to the Markets Outlook newsletter. Don’t miss out on critical insights to guide your investment decisions and refine your trading approach.
