BTCUSD Weekly Outlook – January 7 2022

Last Updated on January 7, 2022

Bitcoin Price Forecast

Introduction

The crypto brokers have not seen any major move in the cryptocurrency market as the top 10 cryptocurrencies have retreated in the recent trading floor as of the writing of this report. The number one cryptocurrency was down with 1% when it slides down to the range of $45,478, a lower level since 17th December 2021, however, the trading volume increases by 24% around $40 billion from the CoinMarketCap data.

BTCUSD Technical Analysis

Monthly Chart

BTCUSD monthly chart - 7th Jan 2021

Monthly Resistance Levels: 69412, 59099

Monthly Support Levels:   39560, 41967

The BTCUSD pair on the monthly chart shows that the Bears were able to dominate the resistance levels as the year came to a close. As the new year begins, we can see that the Bulls are holding on to the support levels of 41967 zones and above because the bitcoin price has not gone below the zone for a while.

The Market Makers and the Whales may take advantage of the moments to retest the stop-loss zones and hunt the stop loss of retail traders who might have held to their long position expecting the bitcoin price to rise from the zone. 

A bullish surge can push the price of bitcoin higher if the momentum is strong around the support level because the Bulls took over the zone as of October 2021 which may repeat a similar scenario.

Weekly Chart

BTCUSD weekly chart - 7th Jan 2021

Weekly Resistance Levels: 69415, 59860, 52098

Weekly Support Levels:   42705, 40000, 45655

 

On the weekly chart, we can see that the support zone of 45655 has been held for the past three weeks. The bearish momentum is not over but the support zone is holding its ground against the forces of supply.

Looking to the left, the candlestick of 20th and 27th September 2021 is a strong zone for the support level for Bulls on the bitcoin chart, many crypto brokers who are keen on holding bitcoin for a longer period are paying attention to the zones.

Daily Chart

Daily Resistance 52098, 51864, 48589.

Daily Support 45478, 47547

BTCUSD pair suffered some loss when the Bears took down the price as of 27th December 2021 when the daily candle closed in an inverse harmer formation. This pushed down the bitcoin value to retest the low of 45478 zones. This move can be done by the whales who wish to hunt the positions of retail traders.

If the zone continues to hold, the Bulls find a way to close above the resistance level of 48589 which will expose the resistance level of 51864 for another bullish swing. 

Bullish Scenario:

A bullish scenario building as the Bulls were rejecting the Bears pressure around the support levels of 47547 and we may see the price of BTCUSD building momentum from the support zone on the daily chart. A close above the resistance of 48589 will trigger a bullish momentum.

 Bearish Scenario:

The bear’s momentum is on the weekly chart has not lost its momentum as the price has been consolidating on the daily chart. A close below the support level of 47547 will likely take the price lower.

Bitcoin BTC News Events 

El Salvador Encourages Bitcoiners To Come Over.

Recently, the president of El Salvador, Nayib Bukele Twitted that laws are being passed to help Bitcoin enthusiasts move to El Salvador also they will help the government to issue its bitcoin BTC bonds. According to the Finance minister, Alejandro Zelaya, the law will benefit any bitcoin users who come to the country and he also stated through the TV network Telecorporacion Salvador “that many International bitcoiners who desire Salvadoran nationality can apply through the new law.”

The new law has a plan to help the country to issue a bid of about $1 billion worth of bitcoin bonds, the government is dubbing EBB1 and wants to create a Central American “debt market” a non-crypto development. The plans need a legal framework and regulations according to the minister because the bitcoin bond is first of its kind, hence, adequate regulations must be in place beforehand.

Critics on the other hand emphasize that the lack of a democratic process to discuss and approve the bonds plan and bitcoin city will be moot if the law can face a debate in the parliament. The financial regulators are powerless to approve crypto-related securities proposals, unlike their American counterparts.

Conclusion and Projection

The minister of finance declared that the government does not have a law for the insurance of securities in cryptocurrency nor do they have any authority that controls the operations in the securities market. A critic like Jorge Stolfi is not impressed and warns that a horde of scammers and fraudsters will be going to El Salvador.

The BTCUSD pair is still in a consolidation state on the daily chart, an opportunity to close below the support level will take the price lower, but if the Bulls can close above the resistance zone of 48589 the price of bitcoin will rise and it will attract more crypto brokers to open long positions in anticipation for the next bullish surge that will create a new ATH in the market.

James S. Martin
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