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Bitcoin Breakout Has Opened Doors to $25K: Analysts
Bitcoin looks north, with further gains hinging on sentiment in traditional risk assets, one analyst said.
Updated Jan 24, 2023, 8:52 p.m. Published Jan 24, 2023, 9:48 a.m.
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Bitcoin's January price rally has analysts focusing on higher valuations last seen in mid-2022.
The top cryptocurrency by market value has risen almost 40% to $23,000 this month, the steepest gain since October 2021, according to CoinDesk data.
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The bounce looks impressive, considering it has cleared key resistance levels despite lingering concerns about the fallout from the bankruptcy of crypto exchange FTX. A resistance level is the price where supply is expected to be strong enough to keep prices from moving higher.
Bitcoin's October bounce ran out of steam around $21,000, establishing that as a significant price hurdle. By moving above it, bitcoin has flipped the former resistance into support.
"Bitcoin has extended its sharp relief rally, clearing resistance near $21,000," Katie Stockton, founder and managing partner at Fairlead Strategies, said in a note to clients. "The next resistance is more significant at the August high ($25,000)."
The weekly chart MACD histogram, an indicator used to gauge trend strength and changes, is producing higher bars above the zero line, a sign of improving bullish momentum. At the same time, the overbought reading on the stochastic indicator is a signal for caution on the part of the bulls.
"We remain neutral intermediate-term with the return of overbought conditions per the weekly stochastics," Stockton noted.
According to David Duong, head of institutional research at Coinbase, any rally toward $25,000 depends on traditional risk assets.
Traditional risk assets have regained poise in the past two trading days, with technology stocks leading the way higher on easing concerns of recession and a less aggressive U.S. Federal Reserve. Investors are certain that the Fed will slow the pace of tightening to a 25 basis-point rate increase on Feb. 1.
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KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
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Key bitcoin price levels to watch as downward pressure builds
As bitcoin remains in a downtrend, several technical and onchain levels stand out as critical areas of support.
What to know:
- The 100-week moving average at $87,145 remains the main line of defense.
- Below this, the cost basis of U.S. spot bitcoin ETF buyers at $84,099 has provided support during recent consolidation.
- A sustained break below $80,000 would likely open the door to a revisit of the April 2025 low near $76,000.
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