Based on a series of rising technical and macro indicators, BTC shows the potential to rebound its ongoing price to $25000 by March.

Bitcoin price withdraws from the safe channel section of the decline.

At first, Bitcoin is likely to touch $25000, mainly because it withdraws from the ubiquitous downside safe channel.

Notably, BTC's share price reached a range late last week, while trading volume also rose. The upside of this digital currency pushes the price above its friction resistance convergence point, which contains a psychological price ceiling of $20000 and its 20-week index moving average (20-week moving average; emerald green wave) around $19500, as shown below.

Trading volume is strong, raising three pressure levels, indicating that traders believe that prices will continue to rise. If that happens, the next upside goal for Bitcoin is the 200-week moving average (yellowish waves), which is about $25000, up 20 per cent from total demand at this stage.

The dollar forms a "death cross"

The prospect of a rising professional technology market for Bitcoin comes in the face of a relatively weak dollar, which fell on expectations that the Fed meeting would suspend interest rate hikes and lower inflation.

Since March 2020, the trend of these two assets has basically been the opposite. According to TradingView, as of Jan. 16, the daily correlation coefficient between Bitcoin and the U.S. Stock Index (DXY) was-0.83. The US stock index is a weather chart that tests the level of competition between the US dollar and key markets for lending currencies.

Under the traditional technical equipment, the US dollar will suffer a lot of damage in the future.

This process is called the "death cross", and this happens when the 50-period moving average of an asset is less than the 200-period moving average. For the dollar, the death cross shows that its mechanical energy is weaker, representing its long-term position that the market has been leading cars to sell in the short term.

Crypto Ed, a separate investment analyst, said of the dollar: "it is expected that more and more indoor space will decline in the medium and long term."

"Asset risk will rebound a lot as a result. Or better to say: I expect BTC to get out of the bullish cycle, as the DXY rally is over.

The price of Bitcoin is not easy to increase in the long run.

So far, Bitcoin has risen 30% to $20, 000 in 2023, but chain data show that buying trends lack strong investor support.

For example, the total output of bitcoin held by digital currencies such as private equity funds, exchange-traded funds and other funds has been declining over the past six months, according to the CryptoQuant fund control index.

In addition, according to the comparison between CryptoQuant's dynamic password transfer and cash flow ratio index, except for the login password exchange, there are no suspicious transactions in the chain.

The token transfer index value indicates the total number of coins transferred within a certain period of time, while the cash flow ratio indicates the proportion of the exchange-related coin transfer to the entire Internet coin transfer.

"generally at the bottom, investors want to buy quietly with over-the-counter trading," MAC_D, an investment analyst, stressed, adding:

The deal was nothing more than a dynamic transaction on the exchange, without any unusual trading. [...] [...] Investors at this stage have always been rational and only hesitated. When they expect an all-round growth trend, over-the-counter trading is likely to be dynamic.