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BTCUSD Weekly Outlook and Bitcoin Fundamentals, 21st Jan 2022

Introduction

The performance of bitcoin in recent times has made the number one coin slip below the $42000 mark and it has also affected other altcoins in the digital asset class. 

As the price of the cryptocurrency is around some key areas on the chart, India brokers are observing how the market will react around those zones.

BTCUSD Technical Analysis

Monthly Chart

BTCUSD monthly chart - 21st Jan 2022

Monthly Resistance Levels: 69000, 59117, 47990.

Monthly Support Levels:   39600, 28900

The effects of the bullish trend reversal as of 01 November 2021 have continued to push the price down to the south. The bears have dominated the BTCUSD pair since the rejection of price attracted more Indian brokers and other market participants. The sellers have dominated the cryptocurrency market and if the momentum can close below the support zone it will expose the next level of 28900.

Looking at the chart, the price of bitcoin is around the support zone of 39600 which may either break out below the levels or the price may establish the zone as a support for the price to bounce up if the short position traders fail to close below the zone.

Weekly Chart

BTCUSD weekly chart - 21st Jan 2022

Weekly Resistance Levels:  59250, 52100.

Weekly Support Levels:  39573, 39558

The weekly chart sentiment shows that the momentum is bearish and there is no sign of weakness from the downtrend. For weeks the cryptocurrency market has been bearish since November 15, 2021, since the bearish engulfing candlestick pattern reversed the previous trend.

The previous low of 20th September 2021(39573) created a bounce for the price that went high before facing a retest as of 10 January 2022.  The zone is under pressure for either a breakout below or a bounce like it did previously.

Daily Chart

Daily Resistance Levels:  44650, 52098 

Daily Support Levels:  40600, 39460 

Some India brokers and cryptocurrency analysts share their thought that the BTCUSD pair on the daily time frame is looking for support having seen the price in a consolidation state around the support zone of 41. Some believe that we shall see more of the retest taking place at the lower lows of the zones before the bullish scenario takes place.  

Some analysts like Altcoin Sherpa told his 166 followers on Twitter that he expects a big liquidation candle followed by a slow grind down for the BTCUSD pair before he can determine the support zone.  Another analyst Bennett Justin expects a rebound of 20% to 30% from the support zones where the price is sitting currently in the coming weeks.

Bullish Scenario:

If the support zones where the price of bitcoin can hold will ring about a Bullish rally in the coming days. The cryptocurrency market needs the Bulls to close above the recent high of 44650 on the daily time frame for the bulls to dominate the market.

Bearish Scenario:

However, on the daily chart, the short position traders who are still holding their short position will need to take out the low of 39460 for them to see the price continue in their direction.

Bitcoin BTC News Events

Bitcoin is facing a regulatory challenge in Singapore. 

The Singaporean authority (MAS) issued a new guideline to cryptocurrency companies to eschew advertising to the general public because the government wants to limit crypto trading to the general public which is purely risk-oriented.

From the guideline, Singapore’s Monetary Authority of stated that Service providers of  Digital Payment are not allowed to offer the trading of DPTs cryptocurrency in a way that trivializes the high risk involved in trading DPTs, also their services should not be promoted or advertised in public places or through any media directed at the general public in Singapore.

Digital payment token service companies in Singapore are to comply with the regulations required to mitigate the risk associated with trading cryptocurrencies. They are required to carry out proper customer due diligence, regular account reviews, and report suspicious transactions to avoid the facilitation of money laundering and terrorism funding.

BTCUSD Conclusion and Projection

The Indian brokers, cryptocurrency traders will be waiting for the market’s reactions as the price of BTCUSD is struggling to establish support for the Bulls while the Bears are looking for a way to break out below the previous support zone for the trend to continue its downward trend.

 



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