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Bitcoin (BTC) Price Prediction: BTC/USD Fails to Reclaim the Psychological Price Level, May Resume Consolidation

Bitcoin (BTC) Price Prediction – January 16, 2021
On January 14, BTC/USD retested the psychological price level but failed to break the resistance level. BTC price fell to $34,500 and became range-bound between $34,000 and $38,000. The $38,000 price level is now resistant to the BTC price. Today, the upward move is facing rejection at the $38,000 high.

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

BTC/USD – Daily Chart

Following a second retest at the $40,000 resistance, the crypto price is gradually resuming a downward move. The reclaiming of the $40,000 psychological price level was a brief time. At first, the BTC price dropped below $38,000 low as the same price level becomes resistant. On January 8, when BTC price tested the psychological price level, BTC price slumped to $31,300. The January 14 retest of the resistance level may follow the same bearish pattern. Today, the BTC price is trading at $36,600 at the time of writing. Traders believe that second rejection at the recent high will lead to consolidation and subsequent resumption of upside momentum.

Bitcoin (BTC) Indicator Reading
BTC price retraces to the support of the 21-day SMA. Since January 11, the crypto’s price has been holding above the 21-day SMA. This is an indication of further upward movement of the coin. However, a break below the SMAs suggests a further downward movement of the coin. The king coin has risen to level 61 of the Relative Strength Index period 14. It indicates that Bitcoin is in an uptrend zone and may continue upside momentum.

BTC/USD – Daily Chart

Bitcoin is currently retracing from the psychological price level. The Fibonacci tool has indicated a further upward movement of the coin. Meanwhile, on January 8 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement level suggests that BTC price will rise to level 1.272 Fibonacci extension or the high of $48,665.90. The crypto’s price is likely to reverse and return to 78.6 % Fibonacci retracement level where it originated.

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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.