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Technical Analysis for BTCUSD for 18th January 2022

Bitcoin Sell Off Shatters Bulls' Hope, Bears Setting Sight on $40k?

Bitcoin's hash rate is rising despite price shocks and has printed a new all-time rate above 209 EH/s. Following the Bitcoin mining ban in China, the network is now more robust and decentralized, with activity spread out across the U.S., Europe, and South America.

Past Performance of BTC

The Bitcoin price continues to cave in under the weight of sellers, printing lower lows against the USDT in the daily chart. Although traders are confident, bears are stepping up in the short term. From the BTCUSDT candlestick arrangement, prices may drop below the immediate support of around $41.5k, a precursor for a possible correction to $39k or worse.

Bitcoin Technical Analysis

BTC prices are trickling lower as per the candlestick arrangement in the daily chart. Losses of January 17 seem to be confirming the double bar formation signaling bears and the bearish engulfing bar of January 13. In lower time frames, a consolidation has formed. However, there must be a confirming bar below $41.5k or above $44.5k—and the middle BB—for trend definition. Even so, sellers are overwhelmingly in charge. Aggressive traders may want to ride the trade, unloading the expansions below the middle BB targeting $40k—or lower in the short term. On the flip side, there will be hope for optimists, expecting gains above the multi-week dynamic resistance line.

What to Expect of BTC

Sellers are in the driving seat and may force the coin below $41.5k if they double down. A break below may see BTCUSDT price crater to $40k—retesting January 2022 lows. On the bright side, gains above $45k could strengthen bulls targeting $50k in a rebound.

Resistance level to watch: $45k

Support level to watch: $41.5k

Disclaimer: Opinions expressed are not investment advice. Do your research.

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