Bitcoin price: unhealthy rise leads to overdue correction

Bitcoin price: unhealthy rise leads to overdue correction

At some point even the strongest rally needs a break. The BTC rate tried several times to overcome the 423 Fibonacci extension at USD 40,407 per day’s closing rate, but failed three days in a row. After four green weeks and an absolutely overbought status, there was a sale on the crypto market on the night of January 10th to 11th. The Bitcoin Trader software rate fell a staggering 23 percent to USD 30,300 within 18 hours. This resulted in an overdue correction in the market as a whole after weeks of bull boom.

Bullish scenario (Bitcoin price)

Courageous investors use the correction to the supertrend in the area of ​​30,000 USD for new entrants. As a result, the price rose again to the resistance at USD 36,600 before profit-taking began again. Yesterday, Tuesday, the rate of the key currency remained within its range of the previous day. One speaks of a so-called inside day. On such a day, a new fair value is determined for the reserve currency. The bulls‘ goal must now be to stabilize the price above the EMA20 (red) at USD 32,700 by closing the day. If the BTC price can rise back above the red downtrend line in a timely manner and overcome the resistance at USD 35,075, the previous day’s high at USD 36,600 will come into focus again.

If this resistance is also broken, the direction decision will be made in the area of ​​38,189 USD

Only when this resistance is overcome dynamically, a renewed test of USD 40,407 is to be expected. A daily closing price above this resistance clearly brightens the chart image again and increases the probability of prices continuing to rise. If the all-time high of USD 41,970 is subsequently overcome dynamically, an increase to USD 43,703 must be planned for first. This is where the 461 Fibonacci extension from the daily chart runs. If the bulls can pass this resistance level, the next major hurdle awaits at USD 45,710. This target is taken from the monthly chart. If the rally picks up speed again and the BTC rate steers towards USD 50,000, an increase to the stated chart targets for 2021 at USD 61,694 and USD 77,678 can be expected in the medium term.