Technical Analysis for BTCUSD for 7th January 2022
Bitcoin Bear Breakout, Hawkish FED Accelerating Sell-off
Bitcoin is selling off on news that the FED will raise interest rates and gradually reduce its bond purchasing program in 2022.
Past Performance of BTC
The Bitcoin price is under pressure, dropping roughly 40 percent from peaks. Currently, the BTC price slumped below the minor support (now resistance) at $45.6k and looks likely to retest $40k. The accelerated decline is at the back of fundamental developments. The FED would proceed to gradually wean the economy and raise rates.
Bitcoin Technical Analysis
BTC sellers are in the driving seat, reading from the developments in the daily chart. The January 5 bear bar sliced below $45.6k, dashing bulls' hopes. The confirmation of January 6 is an indicator of market weakness. Accordingly, aggressive traders may find entries on pullbacks below $45.6k, targeting $02k. If the downtrend is strong, BTCUSDT prices may even slide to retest $38k—the 78.6 percent Fibonacci retracement line of the H2 2021 trade range.
What to Expect of BTC
Sellers are in the driving seat. The downside momentum is strong since BTC bear bars are banding along the lower BB. Combined with apprehensive traders, BTC prices may likely post more profound losses forcing the coin to $40k. However, a pullback above $45.6k reversing January 5 and 6 losses may support cautious traders.
Resistance level to watch: $45.6k
Support level to watch: $40k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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CryptoAltum does not accept any clients under the age of 18.