• Bitcoin is trading in a well-defined range around $18,000 to $23,000.
• Analysts predict a further breakout of the current trading range that could see Bitcoin prices matching those of gold.
• Bitcoin rose to new multi-month highs on Jan. 20 as the third trading week of an explosive January came to a close.
Bitcoin is continuing to break records in 2021, with the cryptocurrency climbing to new heights in the first few months of the year. On Jan. 20, the digital asset rose to new multi-month highs, with Bitcoin prices trading in a well-defined range around $18,000 to $23,000.
Analysis from on-chain monitoring resource Material Indicators revealed that there is a lack of liquidity below $18,000 and above $23,000, suggesting that the current trading range is well maintained. Despite the misgivings over the rally’s fundamental strength, Bitcoin managed to avoid significant corrections and is now looking to break out of the range with the help of analysis predicting a further breakout that could see the cryptocurrency prices matching those of gold.
The surge in prices has been a welcome sight for traders and investors alike, with the digital asset rising more than 20% in the last week alone. However, some analysts have warned that the rally may not be as strong as it appears and that there could be a potential correction in the near future.
In the meantime, Bitcoin continues to remain resilient, with the digital asset edging higher at the Wall Street open, in line with the United States equities market. If the current trend continues, it’s looking increasingly likely that Bitcoin could reach the $21,400 resistance zone and possibly even break the record high of $20,000.