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Bitcoin (BTC) Price Prediction: BTC/USD Pushes on the Upside; Can Bulls Overcome $39K Resistance?

Bitcoin (BTC) Price Prediction: BTC/USD Pushes on the Upside; Can Bulls Overcome $39K Resistance?
Bitcoin (BTC) Price Prediction: BTC/USD Pushes on the Upside; Can Bulls Overcome $39K Resistance?

Bitcoin Is in a Tight Consolidation, Can Bulls Overcome $39k Resistance?– January 31, 2022

BTC/USD’s price is consolidating above $38,000 support for a possible price rebound but can bulls overcome $39K resistance? This is because of a recent price range between $38,215 and $39,000 price levels. There is a likelihood of price rebound if the current bullish momentum is sustained.

Resistance Levels: $70,000, $75,000, $80,000
Support Levels: $50,000, $45,000, $40,000

Bitcoin (BTC) Price Prediction: BTC/USD Pushes on the Upside; Can Bulls Overcome $39K Resistance?
BTC/USD – Daily Chart

On January 31 uptrend, BTC price rallied to a high of $38,634 but could not breach the $39,000 overhead resistance. BTC price retraced to the support above $38,215 to form another price range. On the upside, BTC price fluctuates between $38,215 and $39,000 price levels as buyers intend to breach the overhead resistance. In the meantime, BTC’s price has been trading marginally because of the presence of small body candlesticks called Doji and Spinning tops.

These candlesticks dominate the price action. The candlesticks are capable of prolonging the range-bound move of the cryptocurrency. The Doji candlesticks are describing that buyers and sellers have reached a period of indecision. BTC price is at level 40 of the Relative Strength period 14. It indicates that Bitcoin is still in the bearish trend zone and below the centerline 50.

Microstrategy to Expense $146m as Bitcoin Impairment Charges in Q4 of 2021

An impairment charge is a loss acquired when the value of asset declines below its purchase amount, the difference is written off. In other words, an impairment loss is an accepted reduction in the acquisition cost of an asset that is triggered by a decline in its fair value. MicroStrategy decided to add BTC impairment charges as requested by U.S. Securities and Exchange Commission (SEC).

The firm has lost nearly a billion dollars ($901 million) in impairment charges on its BTC holdings over the last six quarters. Presently, MicroStrategy holds a total of 125,051 BTC acquired for $3.78 billion at an average price of $30,200 per Bitcoin. Bitcoin Impairment losses in Q4 of $146.6 million were the third-highest for the company where it accounted for 25% of its BTC purchase in the same quarter. The highest impairment loss came in the second quarter of 2021 where it lost about 80% of the total BTC value purchased in that quarter.

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      Bitcoin (BTC) Price Prediction: BTC/USD Pushes on the Upside; Can Bulls Overcome $39K Resistance?
BTC/USD – 4 Hour Chart

Nonetheless, BTC’s price is still trading in a narrow range between $38,215 and $39,000 but can bulls overcome $39K Resistance?. Bitcoin is rising to retest the $39,000  overhead resistance. The price movement is insignificant and affected by the appearance of small body indecisive candlesticks.

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Read more:
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•                      How to buy Bitcoin

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