Bitcoin ultimately held above the $40,000 support. Let’s take a look at the future outlook for the BTC price.
Status of Bitcoin (BTC)
While Bitcoin initially appeared to continue its recent bearish move, it ultimately closed the week of January 22 on a positive note. Indeed, the price of Bitcoin started the new week above the $42,000 threshold. The weekly candle thus formed a hammer above the support at $41,500. This phenomenon can be interpreted as an encouraging sign for a possible bullish recovery. Currently, the price of Bitcoin is trading slightly below $43,000. It is important to highlight that this price level has recently served as resistance. Moreover, it corresponds to the 50% level of Fibonacci retracements, taken into account from the last high reached by Bitcoin.
This rebound allowed Bitcoin to re-enter its 50-day moving average upwards, which could strengthen investor confidence in the continuation of the parent cryptocurrency’s upward trend. Concerning the oscillators, they also reacted positively. This is particularly relevant as Bitcoin’s mid-to-long term trend continues to be revised upwards. This development may suggest a resumption of Bitcoin’s bullish momentum after a period of oversold. However, the bearish divergence between these oscillators and the price of Bitcoin still suggests potential market downside risk to come.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on derivatives (BTCUSDT)
The BTC/USD liquidation heat map indicates that Bitcoin recently broke through two order-heavy zones, located around $42,200 and $43,000. Bitcoin’s current uptrend suggests that investor interest is primarily buying. Now, the most relevant liquidation zones below the current price are at $41,700 and $39,500. Above the current price, we can note the $44,000 and $45,000. As the market approaches these levels, we could see a massive triggering of orders, potentially increasing the volatility of the cryptocurrency. These areas therefore represent major points of interest for investors.
Hypotheses for the price of Bitcoin (BTC)
If the price of Bitcoin manages to stay above $42,000, we could anticipate a further rise to the $45,000 threshold. The next resistance to take into account, if the bullish movement continues, would be $46,000 or $49,000. At this stage, this would represent an increase close to +13%.
If the price of Bitcoin fails to stay above $42,000, we could envisage a return to $40,000. The next level to take into account, if the bearish movement continues, would be around $38,500. At this stage, this would represent a drop close to – 11%.
Conclusion
Bitcoin has finally started an upward movement countering its corrective phase. Has he finally got out of trouble? What is certain is that it will be crucial to carefully observe the price reaction at the different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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