BTC Price Analysis: Bitcoin Gets Rejected at $38,000 As Bears Show Control Again

Sunil Sharma Bitcoin News PublishedJanuary 31, 2021 | ModifiedJanuary 31, 2021

BTC Price Analysis: Bitcoin Gets Rejected at $38,000 As Bears Show Control Again

Here’s a quick recap of Bitcoin price movement,

  • Elon Musk’s Bio sends BTC price 18% in an hour to $38000
  • BTC price Drops 15% to find support on 200 MA
  • BTC price broke and retested a falling wedge pattern

Bitcoin briefly dropped below its key support level of $30000 this week as many alt coins continued to surge. The price bounced off a bottom trend line and quickly rose $9000 as the bulls showed their strength still stands. A falling wedge pattern has been spotted on the 4 hour chart, with BTC price breaking out 01/29 thanks to Tesla’s Elon Musk changing his Twitter Bio to “#Bitcoin”.

BTC price Analysis: BTC/USD 4-hour chart

BTC price analysis: 4 Hr Chart
BTC price analysis: 4 Hr Chart

A falling wedge pattern has been spotted on the 4 hour chart, with BTC breaking out 01/29 thanks to Tesla’s Elon Musk changing his Twitter Bio to “#Bitcoin”. Later that day, BTC price quickly fell back to key support of $33000 also met with the top trend line of the falling wedge patter. This particular movement can be looked at as a breakout and confirmation (retest).

Trading above $35,700 could help confirm the upswing to resistance level of $40,000. This type of movement can send Bitcoin to new all time highs. Note that a break under the 50MA could send BTC price falling under the weekly support of $30000.

While looking at the volume, we can conclude buyers are still very present in this market as the volume reached a near all time high (coinbase). The Relative Strength Index briefly touched the 70 value (dotted line) before returning back at median levels of 50 as the price fell sharply from 38000.

  • Bitcoin intraday key levels
    Spot rate: $34,300
    Percentage change: 0.08%
  • Trend: Neutral
    Volatility: Subsiding
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Sunil Sharma 156 Articles
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com
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