Bitcoin (BTC) Price Prediction: BTC/USD May Further Decline, Faces Rejection at $36k High

Bitcoin (BTC) Price Prediction – January 13, 2021
On January 11, Bitcoin dropped to $31,327 but it immediately corrected upward to $36,656. However, the correction was short-lived as the BTC price continued with its downward move. As BTC/USD faced rejection at $36,500, there is the possibility of further decline.

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

BTC/USD – Daily Chart

Bitcoin has been falling because it has been trading in an overbought condition for the past weeks. In vertical rallies, there is a tendency for a sharp decline. Since January 10, the BTC price has declined from $41,066.20 to $31,327. Buyers reacted at this low as the coin moved up to face another rejection at the recent high. The selling pressure has resumed as the crypto may further drop to $30,635.

Nonetheless, the coin may resume upside momentum if the current support holds. Otherwise, a retest of the previous low at $28,540 is likely. On January 4, BTC price fell to $28,540 as bulls buy the dips. The bullish scenario catapulted the coin to reach the psychological price level of $40,000. In the meantime, the crypto is hovering above the $33,000 support while the candlestick shows long tails. This indicates the possibility of a strong buying pressure at lower levels of price.

Goldman Sachs Says Bitcoin Is on Course to Maturity
According to Jeffrey R. Currie, Goldman Sachs’ global head of commodities research, Bitcoin has finally started to mature as an asset class. He believes that more institutional money is needed to stabilize the market. In an interview with CNBC, Currie said Bitcoin’s recent rallies have attracted greater institutional interest. However, he claimed a small part of smart-money investors are still a tiny fraction of the overall market. In his words, he said: “The key to creating some type of stability in the market is to see an increase in the participation of institutional investors and right now they’re small […] roughly 1% of it is institutional money.”

BTC/USD – 4 Hour Chart

Nevertheless, the BTC price is hovering above $33,000. A Fibonacci tool has indicated a further downward move, if the current support breaks. On January 11 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This implies that the coin will fall to level 1.618 Fibonacci extension. That is, Bitcoin will reach a low of $23,624.50.

Remember, all trading carries risk. Past performance is no guarantee of future results.
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Azeez Mustapha is a technical analyst with many years trading experience in the stock exchange and crypto markets. He has broad experience in forex trading, coaching, and funds management.