Technical Analysis for BTCUSD for 25th January 2022
Bitcoin Bears Slowing Down, a BTC Retest of $40k Likely
After deep losses in the third week of January, the bleed appeared plugged. Rothschild Investment bought another 93,521 shares of Grayscale Bitcoin Trust.
Past Performance of BTC
The undervaluation of January 23 was corrected on January 24 following the rejection of lower lows below the critical support level. Notably, there is a sharp spike in trading volumes, possibly suggesting that losses at the end of last week were climactic, marking a local bottom.
Bitcoin Technical Analysis
The January 24 bull bar is with high trading volumes. At the same time, it has a long lower wick suggesting strong reversals of lower prices during the NY Session. In correcting the undervaluation of January 23—note that the bull bar is below the lower BB—BTCUSDT prices might add to yesterday's gains, racing to $40k. Even so, the primary trend would remain bearish until there is a strong push above $40k, canceling losses of January 21. In light of this preview, aggressive traders may find loading entries with losses below $35k dashing bulls' hopes. Meanwhile, risk-averse traders may wait for price reactions at $40k before aligning their trades accordingly. A break below $35k confirms sellers of December, paving the road for a retest of $30k.
What to Expect of BTC
BTC prices may add to post further gains as market forces correct the undervaluation of this weekend. In that case, BTCUSDT may retest $40k. If not, sharp losses below $35k will complete the bear trend continuation pattern, possibly forcing prices to $30k.
Resistance level to watch: $40k
Support level to watch: $35k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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