Bitcoin Price Prediction: BTC/USD May Extend the Downside Correction to $35,000
Bitcoin Price Prediction – January 31
The Bitcoin price prediction is likely to stay below the 9-day MA, especially if the pennant pattern support is broken.
BTC/USD Long-term Trend: Bearish (Daily Chart)
Key levels:
Resistance Levels: $42,000, $44,000, $46,000
Support Levels: $34,000, $32,000, $30,000
At the time of writing, BTC/USD is hovering at $37,344. The Bitcoin price is seen crossing below the 9-day moving average after opening today’s trade at $37,904 to touch the daily low at $36,640. As it stands now, the path of least resistance is still downwards. A glance at the daily chart shows the formation of a bearish pennant pattern.
Bitcoin Price Prediction: Where is BTC Price Going Next?
According to the daily chart, the technical indicator Relative Strength Index (14) reveals that the Bitcoin price is not done with the downside. Despite touching the high of $38,000 some few days ago, the Relative Strength Index (14) is facing the south. This could mean that there is still room that could be explored by the bears. Moreover, the coin may continue to follow the downtrend if the price remains below the 9-day and 21-day moving averages.
On the upside, recovery may not come earlier but the support will have to be sort far above the moving averages and a sustainable move above this barrier could revisit the resistance level of $38,500, which may negate the bearish scenario and allow for an extended recovery towards the resistance levels at $42,000, $44,000, and $46,000. However, an increase in selling pressure across the market could force the Bitcoin price towards the supports at $34,000, $32,000, and $30,000.
BTC/USD Medium-Term Trend: Ranging (4H Chart)
Looking at the 4-hour chart, the Bitcoin price is currently hovering above the 9-day and 21-day moving averages. BTC/USD has survived the $36,000 support as the market resumes upside momentum. The king coin is likely to return to the bull market if price breaks above the $38,000 level. Higher resistance is located at the $40,000 and above.
However, if the pennant support caves in, even $37,500 may not be able to hold the support as the technical indicator Relative Strength Index (14) moves above 50-level. On the contrary, the coin is likely to fall to $36,000 and below if the price falls below the moving averages.
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