Bitcoin Price: Weak Support Could Give Way to Further Bearish Momentum
Jan 24, 2020 at 12:37 pm UTC by Azeez Mustapha · 3 min read
Bitcoin price is now rather far away from a recent high of $9,200. The U-turn has come after an impressive performance since the beginning of January.
The BTC/USD market is countrolled by bears for the third day in a row. This Thursday, the Bitcoin price plunged from $8,660 to $8,386.60 level. And in trend continuation this Friday, the price has declined further than $8,300.00 southwards.
The digital asset market records negatives again with bitcoins and altcoins, which are among the largest losers in the top 20. The bearish correction should gain momentum in anticipation of the weekend, as most altcoins unfold the growth of the prior sessions. The overall market capitalization fell beneath $230 billion, and bitcoin dominance returned past 66.0%.
Cryptocurrency bears always claim that “Bitcoin isn’t valuable, as there are currently over 2,000 digital assets.” There exist only 20 PoW digital assets contending with bitcoins as a money commodity and as a store of value, as the rest effectively launches as equity.
The bullish advance, which was highly rated in January of this year, seems to have relapsed and switched to the mantle of the bears, who desire only to damage the digital asset market. The market as a whole is tainted and, surprisingly, the largest gainers in the prior week, now record the biggest losses of the day.
Bitcoin is pulling back from a recent high of $9,200. The U-turn takes place after an impressive performance from the beginning of January.
Bitcoin boosted its recovery profit last December from $6,500. The bulls raised profits over several resistance zones, consisting of the price level of $7,700, $8,000, $8,400, $8,800, and $9,000.
Meanwhile, it is clear that the unfolding scenario has already begun, and bitcoin could soon reach the price level of $8,000 once the support of $8,300 fails to hold. The largest digital asset has recorded a market value of $8,249.78, and as it is an intraday high of $8,400 was reached on Friday.
BTC/USD Technical Analysis: Falters as Southside Risks Set-Off Imminent
Supply Levels: $8,200, $8,000, $7,700
Demand Levels: $9,000, $8,800, $8,300
On Friday, Bitcoin is trading around $8,249.78 level, as the number one digital asset is gaining further bearish momentum. The loss of the support level of $8,300 may lead to the decline of the BTC/USD pair to the level of $8,000 in the short term.
The medium-term bulls may be hiding around the $8,000 level pending the next BTC/USD bullish move, targeting the $10,000 level.
The crypto pair stay bullish when it is trading past the level of $8,300, the key resistance is at the levels of $9,000 and $9,500.
In unforeseen circumstances, the BTC/USD pair is trading beneath the $8,300, sellers may proceed to test support levels of $8,000 and $7,700 in the near term.
Azeez Mustapha is a specialist in Computer Studies (including DTP), Forex and Crypto trading professional. Being expert technical and currency analyst, as well as experienced fund manager and author of several books, Azeez places strong focus on crypto market studies conducting comprehensive price analyses and sharing forecasts of presumptive market trends.
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