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    Home » BTC » Bitcoin Price Analysis: BTC Correction Is Not Over Yet, $30K Before $40K?

    Bitcoin Price Analysis: BTC Correction Is Not Over Yet, $30K Before $40K?

    Author: Yaz Sheikh

    Last Updated Jan 17, 2021 @ 12:41

    Another volatile weekend: the Bitcoin price is down by 7% over the past 24 hours after losing critical support at $36,000. Only three days ago, the cryptocurrency pushed over $40K but failed to close above the benchmark level.

    After failing at $40K, BTC started losing altitude on Friday as it broke beneath a short term rising price channel. It then dropped into support at $34,800 (short term .5 Fib Retracement) and rebounded sharply, but couldn’t overcome resistance at $38K ($37,940, bearish .618 Fib Retracement) as of yesterday.

    Looking at the following 4-hour, after it provided support on two different occasions, the MA-50 line got broken down and, moreover, tested earlier today, this time to confirm the line as support-turned-resistance (around $36K).

    As of writing these lines, Bitcoin found support upon the same ascending trend-line that stopped the bloodbath that took place on Monday. This time the daily bottom was $33,800, according to BItstamp.

    Keeping in mind that it’s Sunday today, the CME Futures Friday’s closing price was $35,625. At the time of this writing, we do not expect any major price gap as we had during the past weekends.

    BTC Price Support and Resistance Levels to Watch

    Key Support Levels: $34,800, $34,000, $33,400 – $33,130, $30,750, $30,000.

    Key Resistance Levels: $36,000, $36,700, $38,000, $39,700, $40,000.

    Looking from the bearish side, if the sellers break down the support at $34,800 (short term .5 Fib), the next level of support lies at $34,000. This is followed by the ascending trend line currently around $33,400 (the same line that Bitcoin found last Monday’s bottom), $33,130 (short term .618 Fib), and $30,750 (short term .786 Fib) – and also the weekly low recorded on Monday.

    On the other side, the first level of resistance lies at $36,000. This is followed by $36,700 (bearish .5 Fib & 4-hour 50-MA line), $38,000 (bearish .618 Fib), and $39,700 (bearish .786 Fib).

    The daily RSI set a lower high and is in the process of creating a lower low, which might indicate a short-term bearish trend. Additionally, it is struggling to stay on top of the mid-line and not to enter the bearish territory.

    Bitstamp BTC/USD Daily Chart

    btcusd-jan17-daily
    BTC/USD Daily Chart. Source: TradingView

    Bitstamp BTC/USD 4-Hour Chart

    btcusd-jan17-4hr
    BTC/USD 4-Hour Chart. Source: TradingView
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    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

    Cryptocurrency charts by TradingView.
    Tags: Bitcoin (BTC) Price
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    About The Author

    Yaz Sheikh
    More posts by this author

    Yaz is a cryptocurrency technical analyst with over seven years of technical analysis trading experience. As an Economics graduate, he has taken a keen interest in the future potentials of blockchain in the financial industry. Removing crypto from the equation, Yaz loves to watch his favorite football team and keep up-to-date with the latest fights within the UFC.

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