Bitcoin (BTC) Price Analysis: A Bounce Off Before Further Drop or New All-Time High?

Price Predictions
Thu, 01/14/2021 - 14:18
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Denys Serhiichuk
Is the current growth wave of Bitcoin (BTC) the last one before a drop below $29,000?
Bitcoin (BTC) Price Analysis: A Bounce Off Before Further Drop or New All-Time High?
Cover image via www.tradingview.com

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The bullish trend has continued on the cryptocurrency market as most of the coins are in the green zone. XRP is the only loser from the list, with a rate dropping by 3.71%.

Top 10 coins by CoinMarketCap
Top 10 coins by CoinMarketCap

The cryptocurrency capitalization index has come back to the $1 trillion mark.

Cryptocurrency market capitalization
Cryptocurrency market capitalization

The relevant data for Bitcoin today:

  • Name: Bitcoin

  • Ticker: BTC

  • Market Cap: $711,171,962,549

  • Price: $38,396.60

  • Volume (24h): $64,533,780,389

  • Change (24h): 11.25%

The data is relevant at press time.

BTC/USD: Is the current bounce off a prerequisite for new peaks?

Yesterday morning, buyers retraced the Bitcoin (BTC) price to the hourly EMA55 area, and this moving average kept the pair's recovery in a narrow sideways range until evening.

Related
Bitcoin Adds $4,000 Over Past 24 Hours, Going Above $38,000, Here's Why

At the end of the day, bulls managed to break through the resistance of the average price level and continue to rise above the level of $36,000.

BTC/USD chart by TradingView
BTC/USD chart by TradingView

Buyers achieved a retest of the $38,000 resistance tonight, which halted the dynamic recovery of the pair. In the morning, a slight pullback to the $36,000 area is expected but, if this level acts as a support, bulls will be able to continue recovering to the resistance area of ​​$40,000.

BTC/USD chart by TradingView
BTC/USD chart by TradingView

On the bigger chart, Bitcoin (BTC) is about to target the peak of $42,000 by the end of the week. Bulls' efforts are confirmed by the buying trading volume as well as the MACD indicator, which is in the green zone.

BTC/USD chart by TradingView
BTC/USD chart by TradingView

From the technical point of view, the current week may be the last bullish one before a more profound decline. According to the Fibonacci retracement, growth may continue up to the 261.8% level, or around $46,000. After that, there is a high probability of seeing a sharp decline as the RSI indicator is already in the overbought zone.

Bitcoin is trading at $38,691 at press time.

 
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About the author

With more than 5 years of trading, Denys has a deep knowledge of both technical and fundamental market analysis. Mainly, he has started his blog on TradingView where publishes all relevant information and makes predictions about top coins.
Thus, his experience is backed up by working in top blockchain related companies such as W12, Platinum Listing & ICO Advisory, ATB Coin, and others, can be contacted at denys.serhiichuk@u.today.