Bitcoin Price Prediction: BTC/USD Breaks the Bull Session as it Tests Support at $8,224

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)

Key levels:

Resistance Levels: $9,200, $9,400, $9,600

Support Levels: $7,700, $7,500, $7,300

BTCUSD – Daily Chart

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.

BTCUSD – 4 Hour Chart

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.

Please note: is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing 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.

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