Technical Analysis for BTCUSD for 5th January 2022
Bitcoin Shaky, Bulls Fail to Overcome Resistance at $50k
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Past Performance of BTC
The Bitcoin price is within a tight trade range capped at $45.5k on the lower end and around $48.8k on the upper side. Although BTC traders are bullish, the failure of buyers to rewind losses of late December calls into question the strength of the uptrend. Glancing at the BTCUSDT price action alignment in the daily chart, bears appear stronger.
Bitcoin Technical Analysis
From the daily chart, BTCUSDT prices are within a tight trade range in a distribution. The failure of bulls to break above $48.8k points to weakness, affirming bears when price action is analyzed from an effort-versus-result perspective. Note that BTC prices are still within the December 28 and 29 bear bars, a negative formation. Even so, a close above $49k may rejuvenate buyers, driving the coin to $53k—a key reaction point. On the flip side, losses below $45.5k and last week's lows may trigger a sell-off, forcing the coin towards $40k.
What to Expect
From the development in the daily chart, price action favors bears, and the probability of the upside remains low. Nonetheless, buyers are hopeful. Their confidence will only be confirmed if there is a high volume close above $50k. If not, BTCUSDT may slump to $40k, as mentioned earlier.
Resistance level to watch: $48.8k
Support level to watch: $45.5k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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