Bitcoin price pulls back from $40,000 but speculators see it at $50,000 in the near-term

John Isige Bitcoin News published January 8, 2021 | modified January 8, 2021

Bitcoin price pulls back from $40,000 but speculators see it at $50,000 in the near-term

  • Bitcoin price rejected from the historical record at $40,000 but short term support expected at $37,500.
  • Speculators believe that BTC has a long way to go, placing their short term goal at $50,000.

Bitcoin hit $40,000 for the first time in history but this was not a surprise to many. The flagship cryptocurrency has been breaking barriers and setting its own pace over the last couple of months.

Although a pullback is underway, it does not seem strong enough to cause much damage to the general uptrend. Thus, speculators in the market still envision BTC exchanging hands at $50,000 in the near term.

At the time of writing, the pioneer digital asset is changing hands at $38,950. A bearish candlestick is being printed following the rejection at $40,000. The bearish outlook has been reinforced by the Relative Strength Index (RSI) as it moves in retreat from the overbought area.

If the downward slope continues, Bitcoin might fall to a seek refuge at $37,500, perhaps give some investors an opportunity to join the market before resuming the spike above $40,000.

BTC/USD 4-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

It is worth noting that BTC/USD is settled above all the three key moving averages on the 4-hour chart; the 50 Simple Moving Average, the 100 SMA, and the 200 SMA. In other words, Bitcoin is majorly in bullish hands and might remain in this state throughout the weekend.

If push comes to shove and an extended retreat comes into the picture, the flagship digital asset is likely to find anchorage at the 50 SMA as it did during the 20% dip on Monday. The 100 SMA is also in line to offer support in case the losses stretch under $30,000.

Bitcoin intraday levels

Spot rate: $38,650

Relative change: -2.4%

Relative change: -958

Trend: Bearish

Volatility: Expanding

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