January 5, 2021 / Analytics

Bitcoin Price Analysis: BTC Market Has Entered The Main Phase Of Upward Trend

bitcoin forecast

Bitcoin (BTC) cryptocurrency rate has stabilized. The market is at the stage of consolidation at the moment. Given the absence of factors indicating a drop in BTC value in the medium term, BTC/USD should rise in price to $ 35,000 by January 12.

Key Points

  • Bitcoin price is trading above the support zone around $ 30,000, which speaks in favor of an appreciation.
  • A bearish trend line has formed with resistance at $ 32,000 on the hourly chart.
  • The upward movement will accelerate after the value of the coin exceeds $ 32,500.

On January 2, an active pump of BTC rate began. On Sunday, the asset price reached a record high in history – $ 34,812 (Bitstamp data). Then there was a downtrend, as a result of which the cryptocurrency fell to $ 27,700. However, on January 4, the coins were quickly bought back, and the price of Bitcoin again exceeded the $ 30,000 mark.

btc chart

Bitcoin price fluctuates within a contracting triangle, so the level of volatility decreases. The lines of the figure will cross on the night of January 5-6, therefore, a downtrend or upward breakout should be expected during the next session.

The price of the virtual currency may well fall to the bullish trend line that started on December 16. In this case, BTC will fall in price to about $ 28,000. It is highly likely that coins will start buying after reaching the bottom, and the value of the coin will skyrocket to the main resistance barrier – $ 35,000.

btc chart

The Main Phase Of The Upward Trend Has Begun In Bitcoin Market

BTC set a record not only for the value of the rate but also for the duration of the bullish trend at the end of the week – 214 days. However, analyst Willy Woo believes the bull run is not over yet. In his opinion, the unprecedented volume of capital inflows indicates that the market is entering the main phase of the upward trend. Wu predicts the value of the coin will rise to $ 100,000 within a year and advises buying and running coins.

Pantera Capital recorded a significant increase in demand for Bitcoin in November 2020. After PayPal added support for cryptocurrencies in partnership with provider Paxos, the volume of Bitcoin trading on Paxos-controlled itBit began to skyrocket. According to Pantera Capital employees, users of only two payment services PayPal and Cash App buy more coins than miners mine. As a result, the demand for BTC significantly exceeds the supply, which leads to an intensification of the bullish trend.

Technical indicators:

⦁ MACD indicator for 4 hours – in the bearish trend zone.
⦁ RSI index for 4 hours – above 40 (in the neutral zone).
⦁ Major Support Level – $ 30,000.
⦁ Major Resistance Level – $ 35,000.
⦁ The nearest pivot points are $ 27,817 and $ 31,243.

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