The Bitcoin price is swinging from below $30k to spot rates but inside a larger $10k range with immediate caps at $35k and $40k.
CIO: Bitcoin is Losing Legs for $40k
Technically, price action is skewed against determined buyers owing to their failure to cross above $35k and the increasing number of analysts saying the coin is peaking.
For instance, the Chief Investment Officer (CIO) of Guggenheim, Scott Minerd, is reiterating his position, saying Bitcoin bulls can’t justify prices at spot rates.
Earlier on, the executive had said Bitcoin prices were climactic and ripe for a swing back to $20k in a correction. While this could happen, following the scripts of Mar 2020, when BTC prices plunged from $10k to around $4k in days, Bitcoin’s fundamentals are solid.
On-Chain Data is Firm
For instance, on-chain statistics point to stronger participation. Judging from exchange outflows, there appears to be a movement towards HODLers. This is despite trading volumes contracting in the past two weeks.
Jan 29’s average daily trading volumes across exchanges had picked up to around $72 billion, a net improvement over the ballpark of $60 billion.
Bitcoin Whitepaper has a New Home in Miami
Meanwhile, Bitcoin is finding support from politicians.
Following Craig Wright’s claims that he owns the Bitcoin paper’s copyrights, Miami is now the first municipal government in the United States to host the Bitcoin’s whitepaper on a government site.
Earlier, its mayor Francis Suarez said he plans to make Miami a modern city. It starts by being accommodative to Bitcoin and cryptocurrencies.
The Bank of Singapore also believes Bitcoin and other cryptocurrencies could replace gold as a haven.
Bitcoin Price Prediction
Based on rock-solid fundamentals, the Bitcoin price is back above $32.5k, adding three percent on the last trading day.
From the 4-HR chart, prices bounced off from the $30k level with a decent trading volume expansion. The spike in participation could suggest the influx of buyers. Therefore, as long as BTC/USD trades above $30k, every dip may be a buying opportunity for bulls.
In the immediate term, the $35k and the resistance trend line could be buying triggers for buyers aiming at $40k. This will entail a bullish breakout from a bull flag in a buy trend continuation pattern.
On the flip side, the BTC/USD price may crumble if sellers flow back, forcing prices below the $29k to $30k zone with comparatively high trading volumes. Despite traders’ confidence, that will confirm the double-bar bearish reversal pattern visible in the weekly chart.
Consequently, this may push back BTC prices back to $25k—the 50 percent Fibonacci retracement line of H2 2020 to Jan 2021 trade range; a case for a full retracement and retest of $20k.
Chart Courtesy of Trading View
Disclosure: Opinions Expressed Are Not Investment Advice. Do Your Research.
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