The month of January is usually bearish for bitcoin price but this one has bucked that trend. It has been the best start to the year since 2012 but analysts are eyeing even greater gains in 2021.
A dump down to $8,500 a few hours ago was responded to rapidly as the following candle on the hourly chart was larger and green.
Bitcoin price quickly moved back into its short term range bound channel pushing to the top of it at $8,700. A sustained move higher is looking likely as there is least resistance to the upside and $9k could be back in play soon.
No January Blues For Bitcoin
Monthly returns for bitcoin price in January for the past five years have been negative. 2015 was the worst January with a loss of 27% followed by 2018 when the asset slumped 21.5%. Last year bitcoin price dropped 10% in the first month of the year and only September has been worse on average over the past nine years.
So far the case has been different for 2020 with BTC gaining 21% to current levels in just three weeks. The month is not over yet but a dump…