BTCUSD – Weekly outlook for Bitcoin Price – 21st Jan 2021


The online investors saw the crypto market lose about $100 billion as the price of bitcoin dropped on the trading platform during the trading week. 

BTC Bitcoin slipped down below the $42000 mark at the writing of the report. The drop of bitcoin in the cryptocurrency market as market has also affected alternative coins in the market.

BTCUSD Technical Analysis

Monthly Chart Bullish 

BTCUSD monthly chart - 20th Jan 2022

Monthly Resistance Levels: 59099, 47989

Monthly Support Levels: 29296, 39573.

January is still bearish as the price of BTCUSD continues in its bearish state. The online brokers who short bitcoin continue to hold on to their position because of the double top chart pattern which is a reversal pattern on the monthly chart. 

If the price of bitcoin should close below the support zone of 39573 we shall see the crypto traders open a short position for a move to the support level of 29296.

Some online brokers who intend to go long are waiting for the price to reach the previous support level of 29296 which took the price of bitcoin up as of 01 July 2021. They believe that if the current support zone fails to hold the next support will help the bulls to regain control of the market.

Weekly Chart

Weekly Resistance Levels: 59250, 52100

Weekly Support Levels:  29300, 39600

BTCUSD weekly chart - 20th Jan 2021

The weekly chart of the BTC/USD pair remains bearish as the price of bitcoin continues to drop after the retest of the 52100 resistance level. The crypto traders in the short position are holding their trade for a possibility of price breaking the low of 39600 soon and the price will drop towards the support level of 29300.

Some crypto analysts believe that the current crypto market dynamics are different from the 2021market sentiment. The number of bitcoins available for liquidation on the exchanges platform is on the increase and it could indicate that the number of the coin is on the downside.

The Bulls may have to wait for the bearish swing to be over before they can get an opportunity to go long. Buying the deep scenario may come to play when the support can reject the seller’s offer from the 39600 levels or the 29300 zones.

Daily Chart

Daily Resistance 52100, 44453

Daily Support 39650, 

The trading week started in anticipation that the bulls will close above the recent high of 44453 level. The Bulls lost their momentum and the price of bitcoin fell. The short position traders have been shorting the BTC/USD pair and they intend to retest the support zone of 39560 that price touched as of 10 January 2022. 

If the price can close below the zone the sellers will dominate the market and push the price to another level of support. However, buyers will have to wait for the retest of the support zones to ascertain if they will have the opportunity to turn the market in their favor.

H4 Chart

4 Hour Resistance 44453.

4Hour Support  39650, 41608

When you connect the low of 10 January candle of Bitcoin and that of the 14 January 2022, you will see that the trendline was broken by the Bears after the resistance level of 44453 rejected the Bull’s attempt to breakout above the zone. This shows that the trend is bearish on the 4-hour chart as crypto traders continue to sell off their bitcoin. The next bus stop for the online brokers who are shorting the coin will be the 39650 level.

Bullish Scenario:

A bullish scenario may take place if the Bulls can take advantage of the support zone to push back the price of bitcoin from the 39650 level by reversing the trend from the zone.

Bearish Scenario

On the daily chart, the market has been bearish and it may continue to take the price down to the support zone because there are few buyers in the market. If the bearish momentum continues, the price may close below the support level of 39650.

Bitcoin BTC News Events 

GRIID and Intel in Partnership.

A major multinational corporation and technology company known as Intel entered into a partnership with an American company called GRIID that equally owns and operates some bitcoin mining facilities, it will be the first recipient of the “Bonanza Mine” chips. 

Reports from FOX business news indicate that GRIID will have access to a larger production of the chips and it would make the mining of Bitcoin more energy efficient thereby reducing the amount of energy needed during the mining process.

Intel plans to unveil the details of the new chip “Bonanza Mine” by 23 February 2022. The chip has ultra-low-voltage energy for mining bitcoin and the chips are expected to come into the market soon. GRIID is Ohio-based and it’s 4 years old, it has other facilities around the United States of America. The company plans to go public through SPAC (Special Purpose Acquisition Company) merger in weeks to come and it will be listed on the New York Stock Exchange with a ticker symbol “GRDI”.

BTCUSD Conclusion and Projection

Online brokers and other institutions are paying closer attention to the crypto asset as the price of bitcoin is about to decide the direction it wants to go. The BTCUSD pair is either to close below the current support level and continue the bearish trend or it establishes as support zone that will reverse the bearish trend to a bullish trend.

I'm based in London ( England, UK )
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.

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