© Reuters
By Laura Sanchez
Investing.com – The cryptocurrency sector is trading higher in its top assets on Monday. The is up 23% last week and 25% so far in January. “This trend follows positive US macro data, which indicates there is still a chance the US can avoid a recession and achieve a soft landing,” said Josh Gilbert, market analyst at eToro.
“This is the first time since November 8, 2022 that bitcoin has topped 20,000 and follows 11 days of gains,” MarketWatch reports.
The rally inflicted pain on bearish traders who liquidated hundreds of millions of dollars in short positions. According to Coinglass, these investors totaled around $125 million on January 14 alone, and the period from January 11 brought nearly $300 million in short liquidations.
What to expect
“From a technical standpoint and in line with the existing correlation with risky markets, cryptoassets and bitcoin in particular did not sit out the sidelines of the market party. A bullish reaction and a halt at the $21,000 benchmark This is the resistance zone to beat to think of moves up to 22,000 and the wall marking overbought and an increase in positive sentiment makes us, at least, very cautious,” says Javier Molina, senior market analyst for eToro.
“Support in the aforementioned $18,800 zone. However, after the sharp rise, the 24,500 levels and further declines,” this expert adds.