Bitcoin (BTC) Price Prediction: BTC/USD Holds above $35,000, Resumes Upside Momentum

Bitcoin (BTC) Price Prediction – January 18, 2021
Since January 8, BTC/USD has failed to break the psychological price level of $40,000. Consequently, Bitcoin is fluctuating between $32,000 and $40,000. For the past week, the BTC price has been repelled thrice at the resistance level. On January 11, there was a strong buying pressure as bulls buy the dips. The crypto is now trading at $35,454 at the time of writing.

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

BTC/USD – Daily Chart

Following its retest at the $40,000 resistance, BTC price fell and resumed consolidation above the $35,000 support. The bulls have earlier bought the dips to enable Bitcoin price to remain stable above $35,000 support. Analysts have expected Bitcoin to surge past the psychological price level of $40,000. Their expectation was based on Joe Biden’s stimulus package that is worth $1.9 trillion. The market did not show any price surge, but a fall below the current support. Nonetheless, if the bulls sustain hold above $35,000 support, there is a likelihood of upside momentum to retest the $40,000 resistance. However, the BTC price is likely to further decline if the $35,000 support cracks.

Neil Liversidge Calls on Government to Ban Crypto Transactions
Neil Liversidge is a Veteran financial advisor who has called on the government of the United Kingdom to ban transactions in crypto currencies like Bitcoin. He is the owner of an independent financial advisory firm, West Riding Personal Financial Solutions. His petition reads: “Legislate to prohibit the payment by or acceptance of crypto currencies by UK resident businesses or individuals, and require UK regulators (the FCA and PRA) to prohibit transactions by UK financial institutions in crypto currencies such as Bitcoin.”

Liversidge indicated that cryptos like Bitcoin have no fundamental value, have a negative influence on society, and are often used for criminal activity. He noted that a ban on crypto transactions in the U.K will reduce the power of criminals using cryptos like Bitcoin for illicit activity. He argued that destroying their financial base will reduce criminal activity.

BTC/USD – Daily Chart

In the meantime, Bitcoin is consolidating above $35,000 support for the resumption of upside momentum. A break above the $40,000 resistance level will increase price acceleration on the upside. 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 extensions or the high of $48,665.90.

Remember, all trading carries risk. Past performance is no guarantee of future results.

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.