Technical Analysis for BTCUSD for 28th January 2022
Bitcoin Recovers, a Close Above $40k Vital for BTC Bulls
President Putin supports a proposal to regulate and tax Bitcoin and cryptocurrency mining operations. Meanwhile, the Bank of Russia maintains a hardliner position against digital assets.
Past Performance of BTC
There are some bright lights with Bitcoin's performance at spot rates. After fears of a possible plunge mid this week, the recovery from the $33k-$35k level has been impressive. Currently, buyers appear to be taking over in smaller time frames though the mid and long-term trend is bearish.
Bitcoin Technical Analysis
The BTCUSDT price remains in a bearish breakout formation in the daily and weekly charts. Of note, prices are still within the January 21 bear bar despite the series of higher highs relative to the lower BB. Still, market forces appear to be correcting the undervaluation of late last week, supporting bulls in the short term. Accordingly, aggressive Bitcoin bulls may find entries in lower time frames to load the dips targeting $40k. On the flip side, more opportunities exist should there be a close above $40k or below $30k, marking the end of the bear run or confirming sellers for the better part of Q4 2021.
What to Expect of BTC
Prices are solid at spot rates but still stuck in an uncomfortable range below $40k. A break above $40k may usher in buyers, signaling a turnaround after deep losses in Q4 2021. It is imperative that if BTC bulls take charge, the break out is with relatively high trading volumes. On the flip side, it could take a turn for the worst if BTC slides below $35k, increasing the odds of a retest of $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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