After the key currency Bitcoin (BTC) threatened to drop below USD 30,000 in the previous week, the bulls came back on the field and pushed the BTC rate by 25 percent to currently USD 36,647. However, the BTC dominance has not yet benefited from this.
After the Bitcoin price threatened to slide again below the psychological mark of USD 30,000 on Wednesday, January 27, the bulls once again successfully defended the make-or-break zone. In the last two trading days, the key currency was able to overcome the downtrend line starting from the all-time high and thus rise by a good 25 percent on a weekly basis. For the time being, Bitcoin is still moving in a superordinate sideways phase, which would only be resolved bullishly with a dynamic breakout above 38,000 USD.
Bullish scenario (Bitcoin price)
The Bitcoin bulls were able to avert the potentially serious fall below USD 30,000 again and are currently setting out to overcome the resistance at USD 36,904. If the BTC price, supported by a fresh buy signal in the RSI indicator, can rise back above this first important resistance, the upper edge of the sideways phase that has been running for 14 days at USD 37,910 will once again come into the focus of investors. If this important resistance level is also regained dynamically, a price increase up to the USD 39,130 area is likely. If the Bitcoin bulls can develop enough momentum and push the Bitcoin rate above this resistance level, a renewed increase to around USD 40,407 can be expected. Reclaiming the psychological 40.
If the bullish investors manage to leave the all-time high of the daily closing price behind, an increase to the 461 Fibonacci extension at USD 43,703 is initially conceivable. If the BTC price overcomes this resistance level in a friendly market environment, a march through to the next important technical chart hurdle at USD 45,710 should be planned. If the BTC rate can dynamically break through this resistance in the near future, the 127 Fibonacci extension at USD 48.795 will first come into focus.
If the crypto market continues to develop positively in the coming trading weeks, the next possible milestone is the 51,667 USD (138 Fibonacci extension) on the way to the 161 Fibonacci extension at 57,667 USD. Here, the BTC course should first take a breather and gather strength. In particular, the resistance at USD 61,694 and the Fibonacci 200 extension at USD 67,463 deserve increased attention. The maximum price target for 2021 can still be seen at USD 77,678.
Bearish scenario (Bitcoin rate)
As long as the Bitcoin does not rise back above USD 36.904 and especially USD 37.910 at the end of the day, a counterstrike by the bears cannot be ruled out. If the sellers push the BTC rate back below USD 34,002, another sell-off could start. This would again be seen as a sign of weakness. If the bears manage to maneuver the price below USD 33,770, a new test of USD 32,023 is conceivable. This is where the 61’s Fibonacci retracement runs. If this support brand doesn’t stop either, a slide to USD 30,070 and USD 29,748 can be expected. Here the supertrend runs in the daily chart. If this support also breaks, the trend low at USD 28,720 comes back into focus. Since it would be the fourth test of this support area,
The consolidation should initially expand to $ 27,563. If the Bitcoin also falls below this support level, a direct sell-off of up to USD 25,752 is inevitable. The 38th Fibonacci retracement runs here. A correction expansion towards the support area between USD 23,887 and USD 23,710 would also be conceivable. This is where the gap in the CME’s future rate runs. If the bears manage to dynamically move the Bitcoin price below this range, a price slide to USD 21,892 is likely. A break in this support is likely to cause the BTC rate to collapse to the 2017 all-time high at USD 19,884. A bullish backlash can be expected at the latest at this key support. At most, the course could spike in the direction of 18.