Bitcoin Price Prediction: BTC/USD Bounces Back; Bull Run Towards $40,000

Bitcoin (BTC) Price Prediction – January 14

The price of Bitcoin is back above $38,000 as the recovery is coming up slowly.

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

Key levels:

Resistance Levels: $43,000, $45,000, $47,000

Support Levels: $34,000, $32,000, $30,000

BTCUSD – Daily Chart

BTC/USD has once again made an impressive move to the upside during the early trading session today but the coin is currently trading below $7,500 after touching the key resistance at $7,676.57. In order for things to change in the near-term, traders would need to see BTC/USD make a higher high and a higher low to invalidate the current downtrend that is still intact.

Will BTC Break Through Resistance Level $40,000 or Reverse?

According to the daily chart, the Bitcoin price is trading above the 9-day and 21-day moving averages. If the price ends up closing above the 9-day MA, the market would have reason to be bullish not just till $40,000 but even beyond that to $42,000 or higher. However, despite the recent bullishness in the market, traders are yet to see the on-going correction come to completion, whereas, the Bitcoin bulls are still too optimistic.

In addition, if Bitcoin bulls hold the price above the 9-day and 21-day moving averages; the price could rise towards the upper boundary of the channel and could move to the resistance level of $41,500. A further high drive could send the coin to $43,000, $45,000, and $47,000 resistance levels. Meanwhile, the RSI (14) is warming-up to revisit the overbought zone, which shows an additional bullish movement but the support levels to watch are $34,000, $32,000, and $30,000 respectively.

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

BTC/USD is seen performing well at present. With this, we expect the coin to gain the lost momentum and hit the trade above $38,000. However, the volatility hovers, and the selling pressure still exists which may lead the coin to lose the major support from the moving averages. Meanwhile, the $34,000 and below may come into play should BTC breaks below the moving averages.

BTCUSD – 4 Hour Chart

However, in as much as the buyers continue to reinforce and power the market, traders may expect a retest at a $40,000 resistance level, and breaking this level may further allow the bulls to reach $42,000 and above. The RSI (14) is moving above the 60-level which shows that more bullish signals are coming.

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.