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Bitcoin Price Prediction: BTC/USD Price Plunges to $8,601; Can Bulls Save The Day?

Bitcoin (BTC) Price Prediction – January 20

Yesterday, Bitcoin (BTC) started a sharp decline from the $9,184 resistance and currently declined towards $8,601, but it is likely to find strong bids near $8,300.

BTC/USD Long-term Trend: Bullish (Daily Chart)

Key levels:

Resistance Levels: $9,400, $9,600, $9,800

Support Levels: $8,000, $7,800, $7,600

BTCUSD – Daily Chart

BTC/USD price is down more than 1.0% and it is now trading near the $8,500 level. There was a break below the 9-day moving average with support near $8,450 on the daily chart. The pair is trading above a couple of important supports near $8,200 and $8,100. However, the price faced a strong selling interest near the $8,600 resistance zone. A high was formed near $8,739 and the price started a solid downside correction.

More so, as the Bitcoin price settled below the $8,700 level and the 9-day moving average. It opened the doors for more losses and the price broke the $6,650 level. A low is formed near $8,400 and the price is currently correcting higher. Therefore, BTC/USD needs to climb back above the $8,900 and $9,200 levels to resume its upward move towards $9,400, $9,600 and $9,800.

On the downside, there are a couple of key supports near $8,200 and $8,100. If Bitcoin’s price fails to stay above the $8,300 support, there is a risk of a larger downside correction. The main support is near the $8,400 level, below which BTC/USD is likely to turn bearish and decline towards the support levels of $8,000, $7,800 and $7,600 in the near term as the RSI (14) for the coin is now coming below the 65-level.

BTC/USD Medium-Term Trend: Bullish (4H Chart)

Looking at the 4-Hour chart, BTC/USD trades within the range of $8,474 to $8,744. Nevertheless, Bitcoin has not yet slipped below $8,400 and is still in the loop of making a bounce back. BTC price hovers around $8,630 and may take time to persistently trade above $8,900. The upward movement is facing hurdles near the $9,000 and $9,200 resistance level.

BTCUSD – 4 Hour Chart

However, on the downside, immediate support is near the $8,500 level while the main support is at the $8,400 level. The price may likely fall below $8,350 because the 9-day MA has already crossed the 21-day MA to face downtrend which may likely test the critical support at $8,250 level. Technically, Bitcoin is currently moving in sideways while the RSI (14) moves in the same direction, indicating indecisive market movement.

Please note: Insidebitcoins.com 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.