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Bitcoin (BTC) Price Analysis: Is the Effort Enough to Reach $35,000?

Price Predictions
Fri, 01/22/2021 - 14:40
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Denys Serhiichuk
Is the current dump of Bitcoin (BTC) the last one before a move to $40,000?
Bitcoin (BTC) Price Analysis: Is the Effort Enough to Reach $35,000?
Cover image via www.tradingview.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

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The cryptocurrency market has slightly recovered after yesterday's drop, however, not all coins are in the green zone. XRP is the main loser, falling by 3%.

Top 10 coins by CoinMarketCap
Top 10 coins by CoinMarketCap

The total market capitalization has been affected by the drop and its index has dropped by around $20 billion.

Cryptocurrency market capitalization
Cryptocurrency market capitalization

The relevant data for Bitcoin today:

  • Name: Bitcoin

  • Ticker: BTC

  • Market Cap: $596,604,774,871

  • Price: $32,245.59

  • Volume (24h): $89,237,999,865

  • Change (24h): 1.32%

The data is relevant at press time.

BTC/USD: Is yesterday's drop the last one before $50,000?

Yesterday morning, the Bitcoin (BTC) price rolled back to the support at $34,000, but this level could not stop the onslaught of bears. In the afternoon, the pair were already testing the support at $32,600.

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

In the afternoon, sellers broke below $32,000, and tonight a strong bearish momentum pierced the psychological level of $30,00, setting a local low around $29,760.

Related
BTC, ETH and XRP Price Analysis for January 20

This morning the pair has recovered above the psychological level of $30,000, and if buyers can gain a foothold above this level, consolidation is possible in a sideways range with resistance at $32,600. However, if sales volumes continue to grow, then the pullback will reach the level of $28,000.

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

On the 4H chart, Bitcoin (BTC) is likely to restest the local resistance at $33,770 as part of a correction move. Thus, there is a high concentration of liquidity there.

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

On the daily time frame, a further decline is still possible as the area where most of the volume is focused ($23,000-$26,000) has not been tested yet. Moreover, the lines of the MACD indicator are in the red zone, which confirms the local bearish trend.

Bitcoin is trading at $32,395 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, ATB Coin, and others, can be contacted at denys.serhiichuk@u.today.