January 12, 2021 / Analytics

Bitcoin Price Analysis: BTC/USD Is In Danger Of Collapse

Bitcoin cryptocurrency rate has significantly adjusted after the pump to $ 42,000. It looks like that the downtrend has not ended yet, so BTC/USD should fall in price to $ 24,000 by January 19.

Key Points

  • BTC price hovers above the 100-hour moving average ($ 33,679).
  • A bullish trend line has formed with support at $ 34,900 on the hourly chart.
  • The key resistance zone is located at $ 36,500.

On January 8, the value of Bitcoin reached a record high in history – $ 42,000 (Bitstamp data). On January 10, BTC/USD began to actively sell. The dump continued on Monday. As a result of the coin drain, the BTC rate fell to $ 30,232, but on Tuesday the asset price exceeded $ 35,000.

The dynamics of changes in the value of the virtual currency did not go beyond the upward trend that emerged on December 16. Therefore, in theory, a bullish trend could continue in the Bitcoin market. In this case, buyers will meet strong resistance at $ 36,532, which coincides with the 38.2% Fib recorded during the pump from $ 27,670 to $ 42,000. The main support zone formed at $ 31,000.

btcusd1

Why Is Bitcoin Waiting For Collapse?

The dynamics of changes in  BTC exchange rate from the end of 2020 to the beginning of 2021 coincides in timing and magnitude with the situation in 2017-2018. BTC/USD price plummeted 44% after completing its exponential growth phase three years ago. Given the record value of the asset ($ 42,000), it can be assumed that in January 2021 Bitcoin will fall in price to $ 23,000 – $ 24,000.

However, trader Josh Olszewicz believes BTC price will rise to a resistance zone in the region of $ 46,000 – $ 48,000 after the recent correction. He plans to sell coins at this level, waiting for a reversal in the market. The Average Direction Index indicates the fact that the current uptrend is nearing completion. Nevertheless, the bulls can give one more impulse before the full dump, and Olshevich’s forecast will come true. Taking into account the historical data, during the drain, the coin will drop in price by 45-50% per week.

Technical indicators:

  • 4 hours MACD is in the bearish trend zone.
  • 4 hours RSI is above 40 (in the neutral zone).
  • Major Support Level – $ 31,000.
  • Major Resistance Level – $ 36,500.
  • The nearest pivot points are $ 30,519 and $ 35,969.
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