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Bitcoin (BTC) Price Prediction: BTC/USD Is in a Downward Correction, Battles Resistance at $34,000

Bitcoin (BTC) Price Prediction – January 24, 2021
Surprisingly, BTC/USD dropped to $28989 on January 22 but the bulls ‘bought the dips’ as the coin corrected upward. The price corrected upward but faced another rejection at the $34,000 high. The implication is that BTC price may continue its downward move.

Resistance Levels: $45,000, $46,000, $47,000
Support Levels: $35,000, $34,000, $33,000

BTC/USD – Daily Chart

Following its inability to break the psychological price level of $40,000 for the second time, BTC price fell to $34,000 support and resumed consolidation between $34,000 and $38,000. While the bulls were defending the $34,000 support from further decline, the bears were defending the $38,000 high from a retest of the previous highs. The range-bound movement lasted for a week before the bears broke the $34,000 support signaling a further downward movement of the coin. The BTC price has already fallen to retest the $30,000 support but a strong buying pressure pushes BTC price upward again. The upward move was stalled at the $34,000 resistance. This implies that the selling pressure will continue as price will revisit the $30,000 support. Meanwhile, the BTC price is trading at $31,976 at the time of writing.

Bitcoin Is a “Hedge Against Dystopia”, by Kenneth Rogoff
Professor Kenneth Rogoff is an economics professor at Harvard University who is a crypto skeptic. He said that he doesn’t see Bitcoin succeeding as it is often touted as a store of value or hedge asset. In a Bloomberg interview on Thursday, he said: “It’s conceivable, you know, it could have some use in a dystopian future, but I think the governments are not going to allow pseudonymous transactions on a big scale. They’re just not going to allow it. The regulation will come in.The government will win. It doesn’t matter what the technology is.” Nonetheless, over the years of its existence, Bitcoin has been criticized by prominent people. Warren Buffett has criticized the asset as “probably rat poison squared” and financial commentator Dennis Gartman expressed skepticism in late 2020. Professor Kenneth Rogoff concluded in this manner: “I certainly think I agree that it’s speculative. I’ve been a Bitcoin skeptic, and certainly, the price has gone up, but there’s sort of an ultimate question of what’s the use. Is it just valuable because people think it’s valuable? That is a bubble that would blow up. I think, over the long run, if there’s not use, yes, the bubble will burst. “I hope there’s not such a valuable use, but I suppose it’s a hedge against dystopia.”

BTC/USD -4 Hour Chart

Nevertheless, Bitcoin is still fluctuating above the $30,000 support. The Fibonacci tool has indicated a downward movement of the coin. On January 15 downtrend; a retraced candle body tested the 50 % Fibonacci retracement level. The retracement level suggests that BTC price will fall to level 2.0 Fibonacci extensions or the low of $28,696.60. The price action has already confirmed this level.BTC is rising up.

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