Bitcoin Price Prediction: BTC/USD Trades with a Considerable Support After Nose-diving to $7,149

Bitcoin (BTC) Price Prediction – January 1

The price of Bitcoin is trading in a tight range between $7,053.23 and $7,516.58 for the past few days.

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

Key levels:

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

Support Levels: $6,800, $6, 600, $6,400

BTCUSD – Daily Chart

Today, BTC/USD jumped ahead and faced a key resistance of $7,246.30 but was later rejected and is now trading sideways. With the look of things, if BTC/USD continued to consolidate in this way, we could soon see it break through the above-mentioned level of key resistance and it would then be obvious to target $7,500. More so, we could see a larger decline over the next two days if the downtrend continues to form in a pattern formation.

Meanwhile, the market has remained in the consolidation mode around the 21-day moving average, deciding on the next move. However, it can be expected that the market may continue to sell should in case the declines come together. But, if the bulls show a strong commitment, the BTC/USD could rise to the critical resistance levels of $7,600, $7,800 and $8,000. The MACD indicator, though on the negative is still giving fade bullish signals.

Nevertheless, BTC/USD attempted to develop a recovery above the 9-day moving average but failed to break above the moving average. The daily chart revealed that the weak upward momentum affected the Bitcoin bulls, although bears should be able to push the price towards $7,000 to increase the chances of a downward scenario which may lead the price to $6,800, $6,600 and $6,400 levels in the next downward period.

BTC/USD Medium – Term Trend: Ranging (4H Chart)

Bitcoin’s price is still trading around $7,208 after rebounding from $7,190 in yesterday’s trading. Looking at the hourly price chart, we can see that the bearish supply is becoming heavy in the market, but the bulls are also trying to defend the $7,200 supports. Meanwhile, the $7,100 support level and below may come into play if BTC breaks the mentioned support.

BTCUSD – 4 Hour Chart

However, if buyers can strengthen and energize the market, we can expect a retest of $7,300 resistance level. Therefore, breaking the mentioned resistance could also allow the bulls to test the $7,350, $7,450 and $7,550 upward. However, BTC/USD is consolidating currently and moving sideways on the medium-term outlook. We can expect an increase in volatility soon.

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About AzeezMustaph

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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