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    Home » BTC » Bitcoin Price Analysis: Following $7K Daily Drop, Will $30K Hold?

    Bitcoin Price Analysis: Following $7K Daily Drop, Will $30K Hold?

    Author: Yaz Sheikh

    Last Updated Jan 22, 2021 @ 13:38

    Bitcoin suffered a severe 15% decline in the past 24 hours, which saw the cryptocurrency dropping by $7,000 to reach below $29K. In doing so, it fell beneath the previous symmetrical triangle we were tracking and landed at the lower border of a long-termed bearish triangle.

    More specifically, Bitcoin managed to find support at the $30,760 support we highlighted yesterday, provided by a short term .786 Fib Retracement level. However, BTC did spike beneath this, reaching as low as $28,800 today, but it did not close a 4-hour candle below the support, which might turn short term bullish for a possible correction (which already started).

    A strong surge in volume accompanied the rebound at the support located at the bottom of the triangle. It had increased each time Bitcoin approached this level on the last three occasions, which led to a reversal.
    Nevertheless, all eyes are now focused on the $30,000 support level. A breakdown of this could see Bitcoin heading back beneath the 2021 opening price toward $26,000.

    BTC Price Support and Resistance Levels to Watch

    Key Support Levels: $30,760, $30,000, $29,630, $28,500, $27,870.
    Key Resistance Levels: $32,500, $34,000, $34,450, $35,800, $36,200.

    Looking ahead, if the sellers head to the downside, the first level of support lies at $30,760 (short term .786 Fib). This is followed by the lower boundary of the descending triangle at $30,000.

    The next targets at $29,630 (.5 Fib), $28,500 (short term downside 1.414 Fib Extension), $27,870 (downside 1.272 Fib Exetension), and $26,760 (.618 Fib).

    On the other side, the first level of resistance lies at $32,500. This is followed by $34,000, $34,450 (bearish .5 Fib), $35,800 (bearish .618 Fib), and the upper border of the triangle, around $36,200.

    Looking at the 1-hour rsi, we can identify a bullish divergence. Along with the huge volume of the 4-hour buyers candle, it might turn bullish in the short term.

    btcusd-jan22
    BTC/USD Daily Chart: Source: TradingView

    Bitstamp BTC/USD 4-Hour Chart

    btcusd-jan22-4hour
    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.
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    Read more on: Bitcoin (BTC) Price

    About The Author

    Yaz Sheikh View 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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