BTCUSD Weekly Outlook – January 21 2022

Last Updated on January 22, 2022

Introduction

As we cross into the mid-month, top crypto brokers have seen the market cap of bitcoin price rise to $80.65B. However, the price of the number one coin is still bottled down around $43000-$40000 support levels. 

Will the support zone give way to the sellers or the buyers have gotten a hold to push the price up?  Let us check out the BTCUSD live chart analysis on the different time frames.

BTCUSD Technical Analysis

Monthly Chart

BTCUSD Tradingview chart - Monthly -  20th Jan 2022

 

Monthly Resistance Levels: 69000, 47989.

Monthly Support Levels: 39573, 39558.

The Bears pressure increased recently during the week to continue the sell-off which started November 01, 2021, as the price of bitcoin was rejected at the 69000 zones of resistance. The double top candlestick pattern shows the sentiment of market participants towards bitcoin. The close of December candle has attracted more sellers intending to reach the support zone of 01 September 2021 for a breakout below which will expose the lower support of 29415 level.

Weekly Chart

BTCUSD weekly chart - 21st Jan 2022

 

Weekly Resistance Levels: 52100, 69000.

Weekly Support Levels:   39600, 29296.

The bitcoin market has reached the support zones of (39600) on 20th September 2021 before it was rejected. If the price of the bitcoin can close below the zones, we shall see the price go for the next low of 29296. The pressure to sell off increased around the resistance level of 52100 when the sellers took the price down during the week as of 27th December 2021.

The price of bitcoin has traveled downwards almost the same distance it did when the price was bullish. If the zone where the price is resting can build bullish momentum, we may see the price of the Bitcoin to USD dollar pair reverse from the zone. From the chart, when you connect a trend line from the lows of 19th October 2020 and 21st June 2021, you will notice that the current price of bitcoin is sitting on the trend line.

We may see a bounce from the zone or the price of the BTCUSD pair breaks the trendline for the seller to continue.

 Daily Chart

Daily Resistance 52098, 59250, 44337

Daily Support 42256, 41427, 

The bitcoin market has been quiet for some days as the direction of price could not be ascertained by the market participants and brokers such PocketOption,  because of the uncertainty of the market. The close of 10 January 2022 candle had some buyers pushing up the price for some days before it hit the resistance level of 44337 before it enter into consolidation.

Bullish Scenario:

The support zone of 10 January 2022 has made crypto brokers start looking out for a reason to go long because those zones are levels of psychology. 

The bulls need a close above the resistance level of 44512 for the bullish momentum to increase and encourage the bull market to run. A bullish scenario will be expected when the BTC to USD price closes above the daily trendline connecting the highs.

 Bearish Scenario:

The daily chart had a market structure of broken support of 45400 zones which continued the bearish trend down to the support level of 39460. 

If the bearish trend can breakout below the current support a possible bearish scenario may continue if we see the previous support turned resistance zones (45400) can reject the buyers surge, the bearish trend can continue if we get the breakout below. 

Bitcoin News Events 

Bitcoin and other cryptocurrencies are likely to be used when purchasing US Homes.

According to a New York celebrity, Ryan Serhant a real estate broker forecasted that he has seen the future of home buying in real estate and it involves cryptocurrency. He says that half of the transactions on sales of residential property will be conducted using digital assets and blockchain.

Serhant wrote to his clients during the annual report that contracts can be recorded on the blockchain and signed as NFTs (non-fungible tokens). His company and partners are working on many wallet-to-wallet crypto transactions now in Florida and New York City. 

However, he noted that there will be some uphills for the real estate industry because many lack the understanding and the value of decentralization. He states that” people are most threatened by the things we don’t yet understand and appreciate “.

BTCUSD Conclusion and Projection

If the consolidation of price comes to an end, we may see the Bulls surge from the current support levels where the weekly trend line is intercepting the price of bitcoin, this could be an opportunity for the BTCUSD pair to have a reversal of the trend.

However, the trend of the market is bearish and we may see the trend continue if the price of bitcoin closes below the trendline on the weekly tie frame.

James S. Martin
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