Prominent cryptocurrency analyst Michael van de Poppe, with nearly 700,000 subscribers on Twitter, has published a Bitcoin chart that shows where the flagship cryptocurrency may start going now, after the failed breakthrough of the $23,100 level.
He believes this temporary decline could present some opportunities.
Bitcoin might test $22,300 level
In his tweet, van de Poppe commented on Bitcoin's recent failure to break the $23,100 crucial resistance level for the second time in the past few days and fix above it. Now, the analyst believes, should the leading crypto continue to make lower highs, BTC might get down and test the $22,300 level, probably even trading around it for a while.
He added that this "grants some serious buying opportunities."
“Bitcoin couldn't break through a crucial resistance at $23.1K. If we continue to make LHs, we'll probably test and sweep around $22.3K before continuation.”
#Bitcoin couldn't break through a crucial resistance at $23.1K.— Michaël van de Poppe (@CryptoMichNL) January 24, 2023
If we continue to make LHs, we'll probably test and sweep around $22.3K before continuation.
Grants some serious buying opportunities. pic.twitter.com/P8YPYAaHvU
Bitcoin beats Ethereum in January
As reported by U.Today earlier, this year so far, Bitcoin has surged by roughly 39% since January started. In comparison, Ethereum grew by around 26%.
On the weekend, the major cryptocurrency added 9% and $2,000 to its price overnight, coming close to breaking the $23,000 level. It did go higher than that on Saturday, however, BTC was unable to fix there and move higher.
At the time of this writing, BTC is changing hands at $22,903, rising less than 1% in the past 24 hours and adding 8.14% in the past week.
Jim Cramer urges investors to avoid BTC and buy gold
On Monday, CNBC's MadMoney show host James Cramer warned investors that they should stay away from Bitcoin despite its massive gains this month and go for gold instead.
He stated that they should stop paying attention to "crypto cheerleaders," citing Carley Garner, senior commodity market strategist and broker at DeCarley Trading. Garner believes gold to be the only hedge against economic chaos and inflation. She ignored the fact of Bitcoin breaking above $23,000 on the market's expectations that the Federal Reserve will finally ease its speed on interest rate cuts or give up on them completely.
Garner also compared Bitcoin to shares of Facebook if entrepreneurs suddenly decided to make transactions in them – they are too volatile, she said, and so is BTC.