Digital currency markets have dropped in value during the last two days as more than $100 billion was shaved off the entire crypto market valuation. Bitcoin slid to the lowest point of the year at $28,800 per unit on Thursday afternoon, and a number of other crypto-assets saw significant losses as well. Currently, as digital currency trading sessions head into the weekend, the crypto economy has regained some of the losses suffered during the last few days.

During the last 48 hours, the leading cryptocurrency in terms of market valuation has slid considerably in value. For instance, two days ago the price of bitcoin (BTC) was exchanging hands for $35,900 per coin and on Thursday afternoon (EST), the price dropped to $28,800 per unit. That’s a total loss of -19.77%, but BTC markets have rebounded since then and managed to climb right back over the $30k handle.

At the time of publication, bitcoin (BTC) is swapping at prices between $32,200 to $32,800 per coin and has a touch over a $600 billion market valuation.

Bitcoin cash has a market valuation of around $8.1 billion and is down 12% during the last seven days. During the course of the month, BCH is up 56% and 56% for the 90-day span as well. Against the U.S. dollar over the course of the last 12 months, bitcoin cash (BCH) is up 32%.

In a note to investors, Etoro crypto analyst Simon Peters spoke about bitcoin’s (BTC) recent price movements and volatility. Peters said that lower prices could be “on the cards” but the analyst does not “believe it would last for long, [as] the cat is out of the bag with bitcoin.”

“This price movement is a perfectly natural correction, one which happens in all assets once the market has perceived them to be a little overbought,” Peters wrote. “And although the price is dropping, sitting at just over $31,000 at the time of writing, the demand for bitcoin is not.”

The Etoro crypto analyst added:

Appetite among institutional investors is still growing with the likes of investment trust Grayscale buying $600m of the crypto asset in a single day this week and Blackrock, the world’s largest asset manager, announced two of its funds will trade in bitcoin derivatives in the future.

On Friday, the CEO of Cryptoquant, Ki-Young Ju detailed the recent sell-off may have been sparked by some mining pools selling. “This dump might have started from BTC miners in F2pool,” the Cryptoquant executive tweeted.

The onchain researcher also shared charts of the action which showed the Miners’ Position Index and miner to exchange inflows. “I got these bearish alerts yesterday,” Ki-Young Ju further added. “Miners’ Position Index went above 2.5, 569 people deposited BTC in a single block (10 min), [and] 78 miners deposited BTC in a single block (10 min).”

No one truly knows what will happen from here in the land of crypto assets and the growing economy. During the last few weeks, lots of fear, uncertainty, and doubt (FUD) has been circulating wildly while crypto-assets like bitcoin (BTC) have been bullish.

Some would say that is a bit too much coincidence. Just saying.

— PlanB (@100trillionUSD) January 22, 2021

Want to check out all the crypto market action with prices in real-time? Check out our crypto market aggregator at markets.Bitcoin.com.

What do you think about the recent crypto price action? Let us know what you think about this subject in the comments section below.

Use Bitcoin and Bitcoin Cash to play online casino games here.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Bitcoin (BTC/USD) Forecast

Bitcoin (BTC/USD) Daily Chart

Chart prepared by Tammy Da Costa , IG

If bulls are able to break above current resistance, a bullish continuation could be probable, with the potential retest of $40,000.

However, if bears are able to drive prices lower, a break below current support, could bring the 50% Fibonacci retracement into focus at $29,023

At the time of writing, retail trader data shows 84.05% of traders are net-long with the ratio of traders long to short at 5.27 to 1. The number of traders net-long is 7.02% higher than yesterday and 16.14% higher from last week, while the number of traders net-short is 15.08% lower than yesterday and 20.86% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin prices may continue to fall.

Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Bitcoin-bearish contrarian trading bias.

--- Written by Tammy Da Costa, Market Writer for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

At an online event on Wednesday European Central Bank president Christine Lagarde said that bitcoin had facilitated “funny business” and it needs to be regulated at the international level.

But the cryptocurrency wasn’t really fazed by this as it is not the first – or probably the last – time that more regulation has been demanded for cryptocurrencies by a prominent figure in the financial world, although it does strike as unusual that Lagarde would use the term “funny business”, in what many can assume to mean that it has facilitated illegal activities like money laundering.

BTC/USD is currently pushing above 38,000 after surging more than 9% in yesterday’s session despite Lagarde’s comments. The cryptocurrency has been on a strong bullish run in the last month, seeing an impressive rise of more than 115% in the 20 days to January 8 th , at which point it corrected back down to 30,000 before pushing higher again.

Technically, BTC/USD still has strong positive momentum in order to continue to push higher, with the stochastic showing a bullish cross of the %K (fast stochastic) line over the %D (slow stochastic) line, with further gains to be achieved before the indicator falls into the overbought area. Yesterday’s initial pullback saw a strong bounce off the 38.2% Fibonacci at 32,153, consolidating this area as a strong short-term support.

BTC/USD Daily chart

If we zoom in to the hourly chart, BTC/USD has managed to break above all simple moving averages and a cross of the 20-SMA above the 50- and 100-SMA suggests that price may continue to move higher. That said, we may see price consolidate in the near term with a bearish bias as Bitcoin may lack support to attempt a renewed break of the 42,000 mark. I’d be looking out for significant resistance between 38,800 and 40,000 to start calling for a new price reversal.

BTC/USD Hourly Chart

--- Written by Daniela Sabin Hathorn, Market Analyst

Bitcoin (BTC) Price Prediction – January 15

Bitcoin price extends the bearish leg to areas marginally below $34,500 after numerous trials to sustain gains above $40,000.

Resistance Levels: $43,000, $45,000, $47,000

Support Levels: $30,000, $28,000, $26,000

BTC/USD is seen falling towards $34,000 once again as the largest cryptocurrency embarked on a support smashing exercise after failing to hold above $40,000 following a significant breakout yesterday. However, the bearish control is widespread across the market with other major digital assets posting similar losses as they trade below the 9-day moving average.

The Bitcoin price just plunged below $35,000 one more time, marking $34,298 as the current daily low. Does this mean that Bitcoin (BTC) is finally leaving the significant $40,000 level and searching for a new low? Meanwhile, looking at the declining daily volume candle, together with the steady but stable recent Bitcoin price action, it can be assumed that a stronger move may be coming up soon into the market.

At the time of writing, BTC/USD is struggling to maintain the $39,000 level and if the coin follows the downward trend as the RSI (14) is about to cross below the 60-level, the next supports may likely come at $30,000, $28,000, and $26,000. From the upside, by maintaining the current level of $35,400, a further movement could go above the upper boundary of the ascending channel to send the price to the resistance levels of $43,000, $45,000, and $47,000 which will be well above the channel.

On the 4-hour chart, BTC price hovers below the 9-day and 21-day moving averages around $36,308 which may take time to persistently trade above the moving averages. However, if the bulls gather enough strength and regroup, the upward movement may likely near the $40,000 and $42,000 resistance level.

Meanwhile, on the downside, immediate support is around the $34,500 level while the main support is at the $33,000 level. The price may likely fall below $32,000 if the bears step back into the market, a further movement could reach the critical support at $30,000 level. Technically, BTC/USD is still facing the north as the RSI (14) moves above the 40-level, indicating a bullish trend within the market.

Bitcoin Ticker: BTC= Price: $36,765.37

Bitcoin smashed through $37,700 to hit a new record high on Thursday helping to lift the total value of the entire cryptocurrency market above $1 trillion for the first time.

The digital coin hit an all time high of $37,739.08 at around 1:44 p.m. Singapore time, just a few hours after blowing past $36,000, according to data from Coindesk.

The Easy Way to Make Money from Crypto

The cryptocurrency is up about 29% since the start of 2021 and in the past 12 months has surged over 380%.

Meanwhile, the value of the entire cryptocurrency market, which is made up of bitcoin and other digital coins like ether and tether, surpassed $1 trillion for the first time early on Thursday, according to data from Coinmarketcap.

Many bitcoin bulls say the cryptocurrency is akin to “digital gold,” a potential safe haven asset and a hedge against inflation. In a recent research note, JPMorgan said bitcoin could hit $146,000 in the long term as it competes with gold as an “alternative” currency. The investment bank’s strategists noted that bitcoin would have to become substantially less volatile to reach this price, however. Bitcoin is known for wild price swings.

The idea of bitcoin as a hedge against inflation has continued to gain steam as governments around the world embark on large-scale fiscal stimulus programs. Analysts argue this could cause a spike in inflation.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 25,609.09.

The projected upper bound is: 40,229.86.

The projected lower bound is: 34,173.23.

The projected closing price is: 37,201.55.

A white body occurred (because prices closed higher than they opened). During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 91.5864. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 4 period(s) ago.

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 84.22. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 42 period(s) ago.

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 22 period(s) ago.

FOREX BTC= closed up 890.320 at 36,820.922. Volume was 1% above average (neutral) and Bollinger Bands were 228% wider than normal.

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

FOREX BTC= is currently 160.0% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods.

Our volume indicators reflect very strong flows of volume into BTC= (bullish). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 22 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

The Bitcoin price is a few thousand bucks away from its all-time high printed last week. As per Coinbase data, the BTC/USD all-time high is $41,986.

This is more than double the 2017 highs; a feat achieved spectacularly in less than a month.

At the time of writing (Jan 11), the path of least resistance is still upwards. Trading at $35.5, the BTC/USD price is bullish, gaining seven percent in the last week of trading. Therefore, albeit the contraction, buyers are in the upper hand.

Confirming this is the decent participation level and dominance of the digital gold.

The average daily trading volume is up 38 percent on the last day to $74.5 billion, hinting at trader participation that may drive prices two-ways: Either higher to above $42k or lower back to $30k in profit-taking.

The path of least resistance, despite the current dump, is still northwards. Propping Bitcoin bulls are solid fundamentals, including favorable on-chain metrics.

The Bitcoin price posted a new all-time high of around $42k.

Accordingly, this is an important reaction point for swing traders in the immediate term. On the flip side, last week’s trade range will determine the short-term trajectory depending on if bulls succeed or sellers take over.

As of writing-Jan 11, the BTC/USD price is oscillating within a $14k range with lows at around $28k.

In an uptrend, immediate reaction points for Bitcoin bulls—determining the short-term trend, will be at $42k and $28k—levels to watch out for.

Bitcoin is one of the largest transactional platforms in the world.

Supporters say in the mid of censorship by Facebook, Twitter, and Google, the network is the only true haven.

1. Twitter, Google, Apple, Facebook, etc. are trusted third parties. 2. Trusted third parties are security holes. 3. Bitcoin doesn't require a trusted third party.

— Jimmy Song (송재준) (@jimmysong) January 10, 2021

For people seeking to control and flexibility, the reliability of the network is unmatched.

— Tyler Winklevoss (@tyler) January 10, 2021

The Bitcoin network is now worth more than Facebook and some of the world’s leading banks:

Over the next decade, decentralized blockchain-based services will provide morally, technically, and financially superior alternatives to American & Chinese tech companies alike.

Rest of World FTW. https://t.co/9QnXi1CVsF

— balajis.com (@balajis) January 10, 2021

Despite its mega-valuation and parabolic rise in the last few months, some analysts are calling it tops. They cite activity by miners.

According to Byte Tree, miners have been consistently dumping their holdings since December. However, the strong institutional buying power kept soaking their liquidation.

Based on this data, Ki-Young Ju predicted prices to fall:

I'm going to punt a small short to scalp $BTC in this short-term bearish market.

Chart 👉 https://t.co/RbSJ9xbC56 pic.twitter.com/7RbQN7BgwW

— Ki Young Ju 주기영 (@ki_young_ju) January 10, 2021

The Bitcoin price is still bullish but down over $7k from its all-time high. However, for buyers to be in charge, a break above $42k is essential.

The 4-HR chart shows that the BTC/USD has been recoiling from $42k, trending lower with relatively high trading volumes.

Based on last week’s price action, the support zone is between $34.5k and $30k. These levels flash with the 50 and 78.6 percent Fibonacci retracement lines.

Accordingly, if bears press lower, confirming Jan 10 losses, risk-averse traders may find an opportunity to unload on every high with targets at $30k or $28k—the 78.6 percent Fibonacci level and last week’s lows, respectively.

On the flip side, if prices steady and gains above $42k, buyers can aim at $50k—the 2.68 Fibonacci extension level of the 2018 to 2020 trade range.

Chart courtesy of Trading View

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

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Bitcoin Price Prediction: BTC Freefalling, Road back to $14k?

Bitcoin (BTC) Price Prediction – December 29

The price of Bitcoin rises for another bullish day as the technical indicator continues to move within the overbought zone.

Resistance Levels: $32,000, $32,200, $32,400

Support Levels: $22,700, $22,500, $22,300

BTC/USD is seen pushing the market price above the potential resistance level as the coin keeps moving above $26,000 to trade at $26,888 at the time of writing. The first digital asset is currently moving with strong bullish momentum after a sustainable break above an important technical level.

The weekly chart reveals that the technical indicator RSI (14) is floating in the overbought region. Additionally, the price seems to have reached the upper limit of the linear regression channel coming from last month November 2020, suggesting that BTC/USD could retreat toward $23,000, before attempting to break higher.

However, the 9-day and 21-day moving averages continue to edge higher, showing no significant bearish pressure for the time being. On the upside, $28,000 aligns as the initial resistance. A daily close above that level could lift the price to $32,000, $32,200, and $32,400. In other words, BTC/USD could retreat towards the moving averages. More so, if it breaks below $23,000, the critical supports are located at $22,700, $22,500, and $22,300 respectively.

According to the 4-hour chart, BTC/USD is currently in the ascending range of the medium-term outlook as the target market is keeping the support levels of $25,600, $25,400, and $25,200. Meanwhile, the bulls are gaining momentum with the support of a 9-day moving average as the buyers keep the position intact.

Looking at the technical indicator RSI (14), it shows that BTC price may begin to move sideways before a rebound could take place. Immediately after the market rebounds, the buyers may hit the resistance level of $28,200, $28,400, and $28,600.

The Bitcoin price is known for its gyration. Because of this, there is volatility, and is exactly what excites traders. Assuming their skills are refined, they can either make a fortune or pay dearly for untimely entries.

Thing is, volatility is a double-edged sword.

Trading, after all, is about the bottom line. Make as much money as possible. The pace of money minting, as traders put it, depends on how sound the asset being punted on is. In Bitcoin’s case, traders are confident in the network’s value proposition and prospects as well.

If all is said and done, Bitcoin is the most valuable coin and the most secure, even better than traditional systems considering there is no intermediary and every move is traceable and backed by the diverse community.

This may be exciting, sure, but what triggers traders much more than the network’s value proposition, it appears, is the rapid movement of Bitcoin prices in the last few weeks. There were re-arrangements in May 2020 following the halving event, but the BTC/USD price has been on a tear since then.

The coin’s price has blasted above $20k, a resistance level that took several years to reclaim, and more than doubled after a record 22 days. The value accrued during this time, when BTC prices soared above $20k to $42k, can be equated to the time taken since inception when BTC rose from obscurity to be the most trusted network being experimented on by individuals to becoming a trusted—relatively volatile digital asset, being scrambled on by institutions and family offices. All are desirous of getting a piece of this pie.

However, as aforementioned, Bitcoin is volatile, and the asset price is relatively unpredictable. Its market size is minuscule–a mere fraction of gold, and comparatively illiquid. Analysts pin the digital gold’s haphazard price and choppy price movement to its thin—but growing, liquidity.

Over time, though, volatility has been tapering, shrinking as more investors flow to the asset, considering the censorship-resistant coin in their vast portfolio, a net positive and endorsement for crypto as a whole.

Even so, amid this influx and volatility, there is an emerging pattern that analysts have noted about Bitcoin’s prices. The coin’s prices have been stalling—consolidating throughout its short history, especially around the number–3.

Take, for instance, in the formative stage of crypto and Bitcoin. Its price rapidly rose to $0.3. However, at this level, it plateaued, flat-lining for a period of time, causing some of its holders to liquidate their holdings—though, at that time, there wasn’t a developed market for the digital asset to track the flow of capital effectively.

Over time, bulls managed to crash above this mark, rallying to over $1—the China pump, before racing to over $1k to $20k in late 2017. However, something interesting happened when the Bitcoin price crashed in 2018. At its pits in late December 2018, the BTC/USD price found support at around the $3k to $4k region.

Analysts can explain that this was a coincidence that syncs with patterns.

Around this level, the BTC/USD price had sunk, shaving over 75 percent of its value, finding support at the 78.6 percent Fibonacci retracement level at $3.2k.

Notably, before prices bottomed up to rally to $14k in June 2019, prices consolidated around the $3k to $4k level for five (5) months.

Again, the “level 3” was of significance for BTC prices, laying the foundation as a launchpad for what followed in the next few months. From $3k, prices by more than 4X to $13.8k, peaking in June 2019 before falling back, less than a year before halving in May 2020.

From price charts in the weekly chart, if historical patterns of the early years of the asset and specifically those of late December 2020 guides, there is a chance that BTC prices may, at spot rates within the $30k to $40k frame, consolidate after crashing from $42k for a protracted period before rallying, syncing with happened before.

Analysts are projecting the BTC price to ease past $50k and double to $100k. In their estimations, BTC/USD may hit over $100k in December 2021. Therefore, if we cycle back to December 2018, highlight how prices have been reacting at around “level 3,” odds are, the BTC/USD price is in for a long period of accumulation.

This may average six months. Accordingly, it appears–judging from the back-and-forth of the last few days–that the foundation for $100k is being set, a moon-swing before prices perhaps consolidate at $300k, a 3X expansion.

Bitcoin (BTC) Price Prediction – December 29

Bitcoin struggles to gain momentum following $27,073 rejection as the crypto has been trading between the $26,000 and $27,000 region.

Resistance Levels: $30,000, $30,200, $30,400

Support Levels: $24,000, $23,800, $23,600

At the time of writing, BTC/USD is trading down with 0.33% at its current price of $26,950. Therefore, it is crucial that the bullish pressure above $26,500 is maintained, so as to avert a potential decline below $25,000 and even lower in the next few days. Moreover, should the opposite be the case, and the bulls reject the bearish pressure, $30,000 could be easily be attained.

As the daily chart reveals, the fact remains that bulls are guarding against any deeper drawback positively. So, if the history could repeat itself, BTC/USD is most likely gearing up for a run to at least $30,000 in the next positive moves. However, it’s important to note that the market’s trading volume is building up now, which simple means that the Bitcoin price is less likely to experience sudden crashes. Meanwhile, the support levels are located at $24,000, $23,800, and $23,600.

However, it seems that most factors are in favor of Bitcoin for the coming year 2021, especially immediately after the digital asset broke above $20,000 resistance level. But based on the significant growth in the outgoing year 2020, the next year 2021 should be highly beneficial for the Bitcoin and the entire cryptocurrency market. As the technical indicator RSI (14) confirms, if the Bitcoin price breaks above the channel, it may likely reach the resistance levels of $30,000, $30,200, and $30,400 respectively.

Looking at the 4-hour chart, the bears have been trying to step back into the market, but the bulls are defending the $26,000 support as well. Meanwhile, the $25,600 and below may come into play if BTC breaks below the mentioned support.

However, in as much as the buyers can reinforce and push the market towards the north, traders can expect a retest at $28,200 resistance level and breaking this level may further allow the bulls to reach $28,400 and above. However, the technical indicator RSI (14) is moving in the same direction, suggesting sideways movement.

Bitcoin (BTC) Price Prediction – January 13, 2021 On January 11, Bitcoin dropped to $31,327 but it immediately corrected upward to $36,656. However, the correction was short-lived as the BTC price continued with its downward move. As BTC/USD faced rejection at $36,500, there is the possibility of further decline. Resistance Levels: $45,000, $46,000, $47,000 Support Levels: $35,000, $34,000, $33,000

Bitcoin has been falling because it has been trading in an overbought condition for the past weeks. In vertical rallies, there is a tendency for a sharp decline. Since January 10, the BTC price has declined from $41,066.20 to $31,327. Buyers reacted at this low as the coin moved up to face another rejection at the recent high. The selling pressure has resumed as the crypto may further drop to $30,635.

Nonetheless, the coin may resume upside momentum if the current support holds. Otherwise, a retest of the previous low at $28,540 is likely. On January 4, BTC price fell to $28,540 as bulls buy the dips. The bullish scenario catapulted the coin to reach the psychological price level of $40,000. In the meantime, the crypto is hovering above the $33,000 support while the candlestick shows long tails. This indicates the possibility of a strong buying pressure at lower levels of price. Goldman Sachs Says Bitcoin Is on Course to Maturity According to Jeffrey R. Currie, Goldman Sachs’ global head of commodities research, Bitcoin has finally started to mature as an asset class. He believes that more institutional money is needed to stabilize the market. In an interview with CNBC, Currie said Bitcoin’s recent rallies have attracted greater institutional interest. However, he claimed a small part of smart-money investors are still a tiny fraction of the overall market. In his words, he said: “The key to creating some type of stability in the market is to see an increase in the participation of institutional investors and right now they’re small […] roughly 1% of it is institutional money.”

Nevertheless, the BTC price is hovering above $33,000. A Fibonacci tool has indicated a further downward move, if the current support breaks. On January 11 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This implies that the coin will fall to level 1.618 Fibonacci extension. That is, Bitcoin will reach a low of $23,624.50.

It was probably pretty difficult to trade through the New Year open without hearing about what was happening in Bitcoin. Making matters all the more interesting, even as risk factors continued to flare, Gold prices dropped precipitously while Bitcoin put in a major bullish breakout, eventually tagging the $42,000 level last Friday.

But – rarely do bullish trends translate in a linear fashion, and shortly after this week’s open Bitcoin began to pullback and, at one point, had retraced the bulk of last week’s breakout before finding some buyer support.

That bounce has now led into a round of digestion, and this digestion has shown so far in a somewhat orderly fashion, taking on the tone of a symmetrical triangle formation. Such formations will often show ahead of a breakout, as buying and selling pressure equalizes into a tighter and tighter range.

Gold may have a case sample here as the extreme bullish breakout from earlier this summer has led into now five months of digestion. But Bitcoin took on a similarly overbought condition with this year’s breakout. Prices snapped back aggressively from that $42,000 level so, naturally, there are likely many that are looking at this from a pullback perspective in order to set up long positions or strategies in Bitcoin.

There may be more clearing out to do of support before that bullish look may come back in order, however, as the symmetrical wedge building after a sharp downward move can be argued as a bear pennant formation; and those types of backdrops are often followed with the aim of continuation-lower. This can put focus on support potential around the zone running from around 29,109 up to the 30k level.

Chart prepared by James Stanley ; Bitcoin on Tradingview

In this week’s technical forecast on Gold, I also included a chart of Bitcoin with a number of potential levels pointed out. And so far this week, there’s been a number of inflections off of these levels. The Fibonacci retracement spanning the current 2021 major move has been especially interesting, as the 76.4% retracement helped to cauterize support this week while the 50% marker is currently helping to hold resistance. The 61.8% retracement has put in some work as well, helping to shape short-term support, and the 38.2% retracement marks this week’s current high, and that was set yesterday. These levels are shown in Green on the below chart.

Contact and follow James on Twitter: @JStanleyFX

Bitcoin (BTC) Price Prediction – January 18, 2021 Since January 8, BTC/USD has failed to break the psychological price level of $40,000. Consequently, Bitcoin is fluctuating between $32,000 and $40,000. For the past week, the BTC price has been repelled thrice at the resistance level. On January 11, there was a strong buying pressure as bulls buy the dips. The crypto is now trading at $35,454 at the time of writing. Resistance Levels: $45,000, $46,000, $47,000 Support Levels: $35,000, $34,000, $33,000

Following its retest at the $40,000 resistance, BTC price fell and resumed consolidation above the $35,000 support. The bulls have earlier bought the dips to enable Bitcoin price to remain stable above $35,000 support. Analysts have expected Bitcoin to surge past the psychological price level of $40,000. Their expectation was based on Joe Biden’s stimulus package that is worth $1.9 trillion. The market did not show any price surge, but a fall below the current support. Nonetheless, if the bulls sustain hold above $35,000 support, there is a likelihood of upside momentum to retest the $40,000 resistance. However, the BTC price is likely to further decline if the $35,000 support cracks. Neil Liversidge Calls on Government to Ban Crypto Transactions Neil Liversidge is a Veteran financial advisor who has called on the government of the United Kingdom to ban transactions in crypto currencies like Bitcoin. He is the owner of an independent financial advisory firm, West Riding Personal Financial Solutions. His petition reads: “Legislate to prohibit the payment by or acceptance of crypto currencies by UK resident businesses or individuals, and require UK regulators (the FCA and PRA) to prohibit transactions by UK financial institutions in crypto currencies such as Bitcoin.” Liversidge indicated that cryptos like Bitcoin have no fundamental value, have a negative influence on society, and are often used for criminal activity. He noted that a ban on crypto transactions in the U.K will reduce the power of criminals using cryptos like Bitcoin for illicit activity. He argued that destroying their financial base will reduce criminal activity.

In the meantime, Bitcoin is consolidating above $35,000 support for the resumption of upside momentum. A break above the $40,000 resistance level will increase price acceleration on the upside. On January 8 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement level suggests that BTC price will rise to level 1.272 Fibonacci extensions or the high of $48,665.90.

Bitcoin (BTC) Price Prediction – January 15, 2021 BTC/USD is facing another rejection at the psychological price level of $40,000. Today, the price is falling and approaching the low of $38,000. On January 8 and 10, when the peak price was first attained, the crypto crashed to $31,327 low. The bulls bought the dips as the BTC price moved up to reclaim the previous high. Resistance Levels: $45,000, $46,000, $47,000 Support Levels: $35,000, $34,000, $33,000

On January 14, the Bitcoin price surged again and retested the $40,000 resistance zone. BTC price reached a high of $39,988 and was repelled. In the previous attempts, buyers pushed BTC above the psychological price level but could not sustain the upside momentum. Consequently, the crypto crashed to $31,327. The reason for the crash was as a result of Bitcoin trading in the overbought condition for several weeks. Analysts believe that vertical rallies increase the risks of a sharp decline.

Nevertheless, for the past 24 hours, the bulls are struggling to reclaim the $40,000 price level. Traders believe that a breakout at the $40,000 price level will cause the BTC price to rally above $45,000. As of the time of writing, the BTC price has fallen to $38,786 after rejection from the recent high. Programmer Has Two Password Guesses Left Before Losing $266m in Bitcoin A German-born programmer in San Francisco, Stefan Thomas may lose $266m in Bitcoin. According to the New York Times, Stefan Thomas used a hard drive called an IronKey but lost the paper on which he wrote down the password for the device. The bottom line is that if Thomas fails to remember the password after 10 failed guesses, it will result in the drive encrypting its contents forever.

He has tried eight guesses without any luck. He has two more password guesses to make before losing $266 in Bitcoin. Nonetheless, Thomas has held enough Bitcoin over the years to make a fortune. According to reports, he is wealthy and barely knows what to do with it. He also joined Ripple and acquired XRP, although the company’s legal issues may not affect him over the project’s prospects.

Bitcoin has resumed its upside momentum as it retests the $40,000 high on January 14. According to the Fibonacci tool analysis, Bitcoin is likely to move above the psychological price level. On January 8 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. This implies that the coin will rise to level 1.272 Fibonacci extension. That is, Bitcoin will rise to a high of $48,371.10.

Bitcoin (BTC) Price Prediction – January 11, 2021 BTC/USD has resumed a downward move after three days of correction. The crypto was earlier confined between $38,000 and $42,000. On January 10, the bears broke the $38,000 support signaling a possibility of a deeper correction. The coin has fallen from $42,000 to $32,800 at the time of writing. A further downward move is likely. Resistance Levels: $45,000, $46,000, $47,000 Support Levels: $35,000, $34,000, $33,000

One factor responsible for the current downward move is that the crypto has remained in the overbought condition for a long period. For example, since December 16, Bitcoin has remained in the overbought condition after breaking the psychological price level of $20,000. Nevertheless, if the bulls have broken the resistance at $41,959, a rally to $45,000 would have been achieved. However, the overbought condition has propelled the downward movement of the coin. On the downside, the BTC price has fallen below the $36,000 and $34,000 support levels. The implication is that a further downward move to $29,500 is likely. The upside momentum would have resumed if the broken support levels hold. Bitcoin Is Insurance against Uncertainty, by Chamath Palihapitiya Bitcoin is not an asset tied to governmental control or authority. According to venture capitalist and billionaire, “Bitcoin is a hedge against global uncertainty”. He told CNBC in an interview that Bitcoin will reach $200,000 in the next five or ten year’s time horizon. He said: “The reason is that every time you see all of this stuff happening, it just reminds you that wow our leaders are not as trustworthy and reliable as they used to be”. “So just in case, only do need to have some kind of, you know; insurance we can keep under our pillow that gives us some access to an uncorrelated hedge.”

Nevertheless, Bitcoin has fallen to a 32,800 low and resumed upward. The upward move will resume if the current support holds. On January 10 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. This implies that the coin will fall to level 2.0 Fibonacci extensions. That is, Bitcoin will reach a low of $29,480.20. However, the BTC price has dropped to $32,800 and resumed upward.

Bitcoin (BTC) Price Prediction – January 16

The Bitcoin (BTC) keeps experiencing some intense turbulence, with bulls losing their edge over the cryptocurrency’s price action.

Resistance Levels: $40,000, $42,000, $44,000

Support Levels: $32,000, $30,000, $28,000

At the time of writing, BTC/USD is trading down just under 0.63% at its current price of $36,522. This marks a notable decline from recent highs of $39,697 that was set yesterday. More so, the entire market trends next may undoubtedly depend largely on whether or not bulls can create any long-term support in the lower $30,000. Moreover, a break below here could lead to a serious downside for the entire market and potentially mark an end to the crypto’s uptrend.

According to the daily chart, BTC/USD could not break the all-time high past $42,000. The king coin, at the moment, is moving downhill. Meanwhile, Bitcoin touches the daily high at $37,948 at the beginning of the day, but only to go down to the low at $35,532. After gaining some momentum, the Bitcoin price now finds stability around the $36,000 range, trading at $36,522.

In the meantime, Bitcoin is trading within the 9-day and 21-day moving averages amid a building bearish momentum. The RSI (14) is about to cross below the 60-level, suggesting more downtrends. More so, BTC/USD is still fighting to correct the subtle bearish movement, and the bullish trend coupled with the right volume and high volatility levels is the right ingredient for the recovery to $38,000 in other to resume its upward movement towards $40,000, $42,000, and $44,000 resistance levels while the supports are located at $32,000, $30,000, and $28,000.

Checking the 4-Hour chart, BTC/USD is currently trading below the 9-day and 21-day moving averages. Meanwhile, the Bitcoin price has not yet slipped below $35,000 and still in the loop of breaking or making a bounce back. At the moment, the BTC price hovers at $36,477 and may take time to persistently trade above $38,000. The upward movement may likely hit the resistance level of $40,000 and above if the bulls regroup again.

On the downside, the price could fall below the lower boundary of the channel, a further movement could test the critical support at the $33,000 level and below. The RSI (14) moves below the 50-level, indicating a sideways movement.