Bitcoin (BTC) Price Prediction – January 24
Today, BTC/USD faced a pullback as the price slid below $8,400 and tested support near $8,224 price area.
BTC/USD Long-term Trend: Bullish (Daily Chart)
Resistance Levels: $9,200, $9,400, $9,600
Support Levels: $7,700, $7,500, $7,300
On the daily BTC/USD chart, we can see that price levels have rapidly declined to result in Bitcoin dropping $696 within the space of a few days. Since then, short-term price action has formed a wedge that has eventually broken to the upside. This has resulted in price levels attempting to form a new uptrend. Buying volume is yet to flood back into the market but will be required in order to sustain any form of a new uptrend.
As of now, the market price for BTC/USD and the daily candle is trading at $8,502 but has already moved above the 21-day moving average. The next resistance levels lies at $9,200, $9,400 and $9,600. Typically when the new uptrends are beginning to form, traders will use the 9-day moving average as a pivot resistance point to gauge the strength of the trend. When price levels rise above the 9-day MA, this is a sign of sustainability and will likely result in a continuation of the newly formed trend.
However, should BTC price failed to move up; we may see a price cut to $7,900 vital support. A further low drive could send the price to $7,700, $7,500 and $7,300 supports. For now, the bulls are still defending critical support. But as things stand, the BTC/USD price is rising but the stochastic RSI is moving into the oversold zone.
BTC/USD Medium-Term Trend: Bearish (4H Chart)
Looking at the 4-hour chart, the bears have been dominating the market tremendously, but the bulls are trying to defend the $8,311 support as well. Meanwhile, the $8,200 and below may come into play if BTC breaks below the moving averages and move to the mentioned support levels.
However, in as much as the buyers can reinforce and power the market, traders may expect a retest at $8,500 resistance level and breaking this level may further allow the bulls to reach $8,700 and above. The RSI (14) is moving in the same direction, indicating a sideways movement in the market soon.
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