Technical Analysis for BTCUSD for 31st January 2022
Will Bitcoin Bulls Sustain Prices Above $36.5k?
Despite the market selloff, whales appear to be accumulating at spot rates. At the same time, Colorado Governor Jared Polis is unfazed by fluctuating crypto prices. He will continue pushing for his proposal to accept state tax payments in BTC.
Past Performance of BTC
The dump of January 21 and 22 appeared to have been a climactic selloff given the sharp expansion in trading volumes and the failure of sellers to follow through. Sellers seem to be pressing lower at spot rates even after last week's encouraging performance. If Bitcoin bulls reject lower prices at spot rates, it could be the foundation for a close above $40k, signaling a shift of fortune for buyers who have been on the receiving end since mid-November 2021.
Bitcoin Technical Analysis
Bitcoin bulls might be upbeat. However, BTCUSDT prices are still gauged in the January 21 and 22 bear range. Technically, this is bearish and pours cold water on bulls' optimism. This is despite BTC prices still ranging within the H2 2021 trade range—which is from a top-down approach. The best course of action for traders is to take a neutral stand at the current formation. A close below $36.5k may see BTC tumble back to $35k—or worse. If not, a revival above $40k may signal a shift of trend, subsequently—and possibly—lifting BTC towards $45k in buy trend continuation in line with H2 2021.
What to Expect of BTC
Traders are generally apprehensive even with the fleeting gains of last week. Last week ended up being bullish, which is positive. However, bulls would break free if there is a comprehensive close above $40k with above-average trading volumes pointing to trader participation.
Resistance level to watch: $40k
Support level to watch: $36.5k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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